Asset prices nearing credit boom levels - central bank body

The price of risky assets is approaching pre-crisis levels, with investors putting a greater degree of risk on the table in Q3 despite a weakening economic outlook, according to the Bank for International Settlements (BIS).

The latest quarterly report from BIS has warned some asset prices appear highly valued in a historical context, relative to indicators of their riskiness. The central banking organisations, one of the first major bodies to predict the credit crunch five years ago, added spreads on corporate bonds have fallen to pre-crisis levels, leading bond investors to feel short changed for the level of risk they are taking on. "Asset prices generally increased during the period from the beginning of September to early December, supported by further easing of monetary policies and perceptions that...