The market liquidity of certain instruments  4  BIS Review 129/2007  was affected as well. Large parts of the credit market dried up. Risk premia increased sharply and we saw substantial deleveraging. Equity markets also fell sharply, but were quick to recover. Provision of liquidity by the ECB and other central banks have helped to reduce tensions in the financial system.
However, we still face uncertainty. There might be more delinquencies of US homeowners over the coming quarters, and we do not know when the adjustment process in the US real estate markets will come to an end. Moreover, the situation in money markets has not completely returned to normal.