Demand for credit has been very strong in the US this year, opening opportunities for high-yield, European and emerging market issuers. But there are risks on the horizon at home and abroad.

Two years ago fears abounded that the US municipal bond market was on the brink of a surge of defaults. While those fears proved to be misplaced, local and state governments are still struggling amid a weak economy.

The housing market in the US appears to have turned a corner since the conservatorship of Fannie Mae and Freddie Mac in 2008. But until the government puts clear regulatory guidelines in place, uncertainty surrounding the precise nature of capital rules on mortgages will remain for market participants.

Market reforms are flooding the financial sector and banks are facing the challenge of managing their liquidity more efficiently. But the industry remains divided on best practice approaches to intraday liquidity management.

With the recent Libor scandal failing to shake asset managers' confidence in London, emerging centres will have to work hard if they are to overtake the UK capital as the world's leading asset management centre.

The Dodd-Frank Act, Section 1073 is going to alter the practice of retail cross-border payments services – not just for US-based financial institutions but also for their correspondent banking relationships abroad. The deadline is near, but a practical solution to meet the requirements of the rule still seems far off. The Banker looks at some alternatives that have finally started to emerge.

Bookrunners have taken the blame for hyping the Facebook public offering and undermining sentiment towards other public listings, but the reality is more complicated.