ANALYSIS AND COMMENTS


FINANCIAL MARKET SUMMARY

Selected financial instruments
		Outstanding at end	Transactions during	Other changes during	Outstanding at end
		Dec Qtr 2012	Mar Qtr 2013	Mar Qtr 2013	Mar Qtr 2013
		$b	$b	$b	$b
Currency and deposits
	Currency	63.2	–2.0	–	61.3
	Transferable deposits	550.7	–2.7	–0.4	547.6
	Other deposits	1 233.7	4.7	–0.4	1 238.0
Short term debt securities
	Bills of exchange	118.6	–3.7	–	114.8
	One name paper	339.9	–5.7	–1.3	333.0
Long term debt securities
	Bonds, etc.	1 722.0	29.7	–21.6	1 730.1
Derivatives
	Derivatives	356.7	–38.5	12.5	330.7
Loans and placements
	Short term	321.4	3.0	–0.2	324.2
	Long term	2 546.6	25.7	–0.6	2 571.7
Shares and other equity
	Listed	1 319.9	6.3	81.4	1 407.6
	Unlisted	1 878.5	12.8	39.3	1 930.6
Insurance technical reserves
	Reserves of pension funds and life offices	1 544.4	30.7	39.9	1 615.1
	General insurance prepayments and reserves	96.5	0.6	–	97.1
– nil or rounded to zero (including null cells)

Currency liabilities decreased to $61.3b at the end of March 2013, following transactions of –$2.0b during the quarter compared with transactions of $4.4b for December 2012. Deposit liabilities increased to $1,785.6b at the end of Marcher 2013, following transactions of $2.0b during the quarter compared with the transactions of $34.7b in the previous quarter. The major contributor was the banks which accepted $2.8b. This was offset by the central bank which decreased by $3.2b.

Short term debt security liabilities decreased to $447.8b at the end of March 2013, following maturities of $9.4b. Total bonds liabilities increased to $1,730.1b at the end of March 2013, following net issuance of $29.7b during the quarter. Rest of the World issued bonds worth $12.2b, of which $6.3b were issued domestically and $5.9b were issued offshore. National general government issued bonds worth $10.7b, of which $10.6b were issued domestically and $0.2b were issued offshore. Central borrowing authority issued bonds worth $7.0b, of which $8.0b was issued domestically and there were $1.0b in offshore bonds maturing. Other private non–financial corporations issued bonds worth $3.8b, of which $0.9b were issued domestically and $2.9b were issued offshore. Securitisers had $4.2b worth of bonds maturing, of which $3.6b were domestic bonds maturing and $0.7b were offshore bonds maturing.

The value of derivative contracts on issue at the end of March 2013 decreased by $26.0b to $330.7b. Net settlements were $38.5b for the quarter of which the major contributors were banks –$15.5b and rest of world –$9.8b. This was offset by valuation increases of $12.5b.

Loan liabilities rose to $2,895.9b at the end of March 2013, following transactions of $28.7b during the quarter. Households borrowed $17.1b and other private non–financial corporations borrowed $8.8b. The rest of the world repaid $5.6b.

The listed share market increased by $87.7b to $1,407.6b at the end of March 2013, with net issuances of $6.3b and valuation increases of $81.4b. The major contributors to the issuances were other private non–financial corporations which issued $3.1b and banks which issued $2.9b. The value of the unlisted share market increased by $52.1b to $1,930.6b at the end of March 2013, with net issuance of $12.8b and valuation increases of $39.3b. The major contributors to the issuance were rest of world which issued $9.9b and non–money market investment funds which issued $3.3b.

At the end of March 2013, the insurance technical reserves of life offices and pension funds were $1,615.0b following transactions during the quarter of $30.7b and valuation increases of $39.9b. General insurance prepayments and reserves were $97.1b following transactions during the quarter of $0.6b.