The securities markets and investment conditions in the EU have improved during the first two quarters of 2013 according to the Trends, Risks, Vulnerabilities (TRV) Report and the Risk Dashboard for the second quarter of 2013 published by the European Securities and Markets Authority (ESMA).
The key trends identified in the TRV for the first half of 2013 include the increase in sovereign borrowing costs and corporate bonds, as well as an increase in trading on EU venues. On the other hand, liquidity risks in the main market segments have decreased. Moreover, asset managers of collective investment funds have benefitted from improved market conditions stimulated by bond, equity or alternative funds, whilst money market fund asset decreased.
Despite these encouraging findings, concern persists in relation to liquidity risk, credit risk, market risk in relation to the valuation of assets and the risk of contagion between different market segments.
