Among the main developments:
- In the international capital markets, concern about interest rate trends was reflected in a sharp decline in straight fixed-rate bond issues in the third quarter, although activity in the equity-linked sector remained very strong: announcements of syndicated credits rose to levels last seen five years ago.
- In the second quarter of 1987, international bank lending returned to the high rate of growth experienced in the second half of last year. The new business was largely interbank, more than half of which was accounted for by banks in Japan.
- In the foreign exchange markets, the dollar strengthened in July and August before falling back on publication of poor trade figures: reaffirmation of their commitment to the Louvre accord by G7 ministers meeting in Washington brought a recovery towards the end of the quarter and the dollar closed the period little changed overall in effective terms.