One of the key lessons from the crisis is that in an increasingly market-based and interconnected financial system, disturbances are likely to affect core market mechanisms, such as the distribution of liquidity; they have cross-border implications; and they are likely to propagate in a more unpredictable manner.
While, a priori, the expectation was that these problems would be confined to that market segment, trouble spread rapidly. Significant disruption occurred in the asset-backed commercial paper (ABCP) market and, in turn, moved relatively quickly to the unsecured interbank money market, as concerns escalated about counterparty credit risks.