Corporate bonds have also been the subject of some concern - specifically, whether the risk spreads on bonds issued by domestic corporations, which have narrowed dramatically, particularly for lower-rated issuers, are too low to offer adequate compensation for the probability of future defaults. It would be surprising had we not seen a narrowing of credit spreads over this period.
In turn, this will better equip the sector to serve its purpose as a valuable and sustainable source of funding for economic activity. Conclusion Let me conclude. As you all know, we are facing a challenging macro-financial outlook. Following a decade of low inflation and low interest rates, the past twelve months have seen an abrupt adjustment in the economic environment.