Volume : 4, Issue : 4, April - 2015

Global Financial Crisis-Impact and Performance of Global Market Indices Pre and Post Crisis

Dr. Ch. Chaitanya

Abstract :

<p>&nbsp;The global financial crisis surfaced around 2007 and started showing its adverse effects by mid of 2008. A combination&nbsp;</p> <div>of low interest rates and large inflow of foreign funds during the boom years helped the banks to create easy credit&nbsp;</div> <div>condition for many years. Banks and Financial Institutions repacked these debts with other high risk debts and sold&nbsp;</div> <div>them to worldwide investors creating financial instruments called Collateral Debt Obligations. In this way risk was passed on multifold through&nbsp;</div> <div>derivatives trade. Since the collateral debt instruments had been globally distributed, many banks and other financial institutions around the&nbsp;</div> <div>world have started reporting losses. This with the failure of a few lending institutions in the U.S. the entire financial system in the world has been&nbsp;</div> <div>affected. With this backdrop, the current study describing the global financial crisis focuses on performance of global financial market indices&nbsp;</div> <div>during pre and post crisis era.</div>