IMF flags bond yields and concentrated equity gains as market risks
The October stability report assesses how investors could respond to shocks.
The IMF's October financial stability assessment identified higher bond yields and concentration in equity markets among risks facing investors. The report examines what happens when valuations and financing conditions change at the same time.
Higher yields can raise borrowing costs and reduce the market value of older bonds. Concentrated share gains can make an index sensitive to setbacks in a small group of companies. The IMF looks at how such pressures could be amplified across banks, funds and other financial institutions.