- 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.