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  • Leverage build up across  world  getting  to  high levels.
  • China is a  particular  strong example of this.
  • Leverage is building up in China again after the deleveraging.
  • Collateralized loan obligations (CLO) is reminiscent of the  run up  to the subprime loan crisis.
  • Global central banks reverting back to accommodation.
  • Policies  likely to remain accommodative for longer.
  • Renewed accommodation is good in the short-term, but could be negative in the longer term due to more risk.

argued former Bank of Japan deputy governor, Nakaso.