To this picture was added a new dimension of uncertainty about the way regulations pertaining to some capital instruments might affect returns, and about the way resolution actions may work in some places.
In the opening weeks of this year we saw sovereign yields in major advanced economies move towards historic lows, while spreads for some other sovereigns and corporates – especially high-yield obligations – moved out, with particularly sharp increases for bonds issued by resources companies. Share market volatility increased, with prices generally lower, especially for banks.