- emerging market debt most at risk from Fed policy
- market optimism doesn’t reflect economic outlook
Market optimism ? What’s he been reading/taking ?!
- financial stress in eurozone remains very low
- inflation objectives override all other goals
- geo-political factors could trigger risk reversal
- doesn’t see overvaluation on corp debt and equities
- high-yield govt debt may be overvalues
- regulators must be more alert on shadow banking
ECB vice-president speaking in FFT on the Financial Stability Review
Constancio pulling another happy face
