IMF: high debt, overvalued assets raise risk of disorderly market correction

Business

Global financial stability risks remain elevated despite broadly calm market conditions, the International Monetary Fund said in its Global Financial Stability Report released on October 14. The institution warns that high asset valuations, rising sovereign debt, and growing exposures between banks and nonbank financial institutions could increase the likelihood of a “disorderly correction” if investor sentiment changes. The IMF’s analysis shows that while financial conditions have eased and