The U.S. Federal Reserve on Thursday (6) released its semi-annual financial stability report, warning that including the stock market and other markets, asset prices rise, bringing risk to the financial system tends to increase, and as asset valuations climb, once the market risk appetite mood cools, its prices may have a “sharp drop” in potential risk.
The Federal Reserve pointed out in the report that although the experience to the new crown pneumonia (Chinese communist virus) epidemic, but the overall financial system remains stable, however, the future crisis is heating up, especially if the stock market continues to rise, that by historical standards, the valuation of some assets have reached a high level.
Federal Reserve Board director Brainard (Lael Brainard) in the report pointed out that the earlier hedge fund Archegos burst event shows that some of the measures on hedge fund leverage may not be able to cope with certain risks, and the Federal Reserve Board in the hedge fund “visibility” risk limitations, so that the fund industry More information needs to be disclosed.
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