As the markets digest any pronouncements from AE policy makers, we will continue to experience a toggling between “risk on” and “risk off” market behavior, which always creates “noise” in financial markets. 2  BIS central bankers’ speeches  The BSP has the tools to address such “noise” in our onshore markets, to calm our participants and keep market behavior in check.
Several of these firms have been able to raise fresh capital to offset at least some of those losses, and others are in the process of doing so. However, financial institutions’ balance sheets have also expanded, as banks and other institutions have taken on their balance sheets various assets that can no longer be financed on a standalone basis.