The development of a mature and vibrant corporate debt market is eminently suited for long-term committed funding to match the investment requirements of a long term risk-averse investors seeking regular returns after a lock-in period. Greater deepening in the non-government debt market with sound financial, legal, and regulatory framework would enhance the benefit of price discovery and risk diversification.
The crisis has been a stark reminder of how interconnected the world financial system and economy has become. Financial sectors have also become more interconnected. While most comment has concentrated on the role that the Lehman bankruptcy played in worsening the crisis, we should not forget that the events surrounding AIG also had an impact on global financial markets.