A member of the German central bank is warning that a combination of generous central bank policies and investors’ search for yield in a low-interest rate environment is creating risks.
A member of the German central bank is warning that a combination of generous central bank policies and investors’ search for yield in a low-interest rate environment is creating risks. Real-estate asset values continue to puff up in Europe, and this is a worry. “Real-estate markets in some European countries are pretty high, corporate bond valuations seem stretched and high. The low volatility leads to market participants thinking that they don’t need to hedge,” said the official.
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