boe speech, 2005-11-28
Because it seems to me that the search for yield also highlights some less benign aspects of today's financial system: the opacity of markets in some new instruments; the difficulty of knowing the real value of assets and contracts; reliance on models that have not been tested in the full range of economic conditions; the uncertainties over behaviour of new participants in the markets should events turn adverse; and the difficulty we have in judging just how deep markets will prove to be should a substantial number of investors decide simultaneously to try to realise their investments.
Sentiment: neutral
Topic: financial_stability