Chapter 1. Assessing Risks to Global Financial Stability 1
     Global Financial Stability Map 1
     Credit Deterioration—How Deep and Widespread? 4
     Systemic Risks Have Risen Sharply 10
     Will Emerging Markets Remain Resilient? 23
     Credit Squeeze or Credit Crunch? 32
     Immediate Policy Challenges 36
     Annex 1.1. Global Financial Stability Map: Construction and Methodology 40
     Annex 1.2. Methodology for Calculating Global Losses and Bank Exposures 46
     References 53
Chapter 2. Structured Finance: Issues of Valuation and Disclosure 54
     Valuation and Disclosure of Complex Structured Finance Products 55
     The Role of Off-Balance-Sheet Entities 69
     Conclusions and Outlook 80
     Annex 2.1. The World According to GAAP 83
     References 84
Chapter 3. Market and Funding Illiquidity: When Private Risk Becomes Public 86
     The Nature of Market Liquidity Risks 87
     Funding Liquidity Risks 87
     Market and Funding Liquidity Dynamics 93
     Liquidity Dynamics Since July 2007: An Empirical Investigation 95
     The Role of Central Banks During Periods of Market and Funding Illiquidity 98
     Central Banks’ Response to Liquidity Strains Since July 2007: An Empirical Investigation 102
     Recommendations to Enhance Liquidity Risk Management 104
     Conclusion 109
     Annex 3.1. Liquidity Dynamics Since Summer 2007 109
     References 115
Glossary 118
     Annex: Summing Up by the Acting Chair 125
     Statistical Appendix 129