Vulnerabilities: Market Vulnerabilities and Stability Risks

vulnerabilities: Global financial markets have rebounded so far this year but that could change abruptly, leading to sharp tightening of financial conditions that could have a host of negative effects on the global economy, the International Monetary Fund warned Wednesday, according to Market Watch. In its latest report on the global financial stability, the IMF said near-term risks have risen on balance since last fall, although they remain moderate by historical standards. The risk is this could change abruptly. The report described a broad range of financial market vulnerabilities in global markets. Because these vulnerabilities tend to amplify in a shock, they may increase financial stability risks, the agency said. Vulnerabilities arise from leverage, liquidity, maturity, and currency mismatches on the balance sheets of governments, firms, households, banks, insurance companies and other financial institutions, the IMF said. (news.financializer.com). As reported in the news.