Those who could not find new funding were forced to sell assets into a highly illiquid and unreceptive market. Importantly, investors’ loss of confidence was not restricted to securities related to subprime mortgages but extended to other key asset classes. Notably, the secondary market for private-label securities backed by prime jumbo mortgages has also contracted, and issuance of such securities has dwindled.
– Stability in the foreign exchange market and subdued inflationary pressures on that account are attributable to a considerable narrowing of internal and external imbalances, as well as to a decrease in the risk of investing in Serbia. These results have been achieved through successful coordination of monetary and fiscal policies and will remain an important pillar of price stability.