US rate fears crash party

With a rather good sense of timing, the IMF warned last week in its biannual global financial stability update that risks to the financial system have risen this year.

It is concerned that the easy financial conditions in place for much of this decade are contributing to a build-up of vulnerabilities, such as high debt levels and stretched asset valuations.

The IMF warned markets appear complacent about the risk of a sharp tightening in financial conditions. It says monetary policy could be a trigger for such an event.