GoKawiilIMF flags AI asset bubble, debt and leverage as top risks to financial stability
The IMF's latest Global Financial Stability Report identifies three risks that could trigger a sharp tightening of financial conditions: a correction in AI-related asset prices amplified by leverage, a jump in sovereign bond yields from inflation or fiscal strain, and growing cyberattack threats. The fund also points to vulnerabilities among weaker banks, insurers, pension funds, private credit, hedge funds and emerging markets that could turn market stress into a systemic crisis.