Although market functioning improved following these actions, spreads on the debt of several sovereigns have widened again to levels that are exceptionally high by historical standards and this is still passing through to bank interest rates in the relevant countries, and adds to the cost and difficulty of rolling over wholesale deposits and debt issuance by banks in the relevant countries.
Other interesting developments in world financial markets include the continued broadening and expansion of derivatives markets. The broadening of these markets has largely come about because rapid advances in technology, financial engineering, and risk management have helped to enhance both the supply of and the demand for more complex and sophisticated derivatives products.