The BIS Quarterly Review released today is divided into two parts. The first analyses recent developments in financial markets, financing flows in banking and debt securities markets, and activity on derivatives markets. The second part presents four articles on topics related to debt securities markets. The first of these proposes an explanation for why corporate credit spreads are much wider than expected losses from default; the second analyses common factors in emerging market spreads; the third characterises the market for sovereign credit default swaps; and the final article suggests a way to unify government bond markets within individual countries in East Asia.