Super-regulator warns on high yield and ETFs

The board raised concerns at a meeting in Rome yesterday to assess vulnerabilities affecting the financial system. In a note it says there are signs the low interest rate environment, which has been necessary to support growth and financial sector recovery, may be leading investors to search for yield in more complex non-standard market segments. The result is investors are increasing their exposure to liquidity risks, it says. Developments in exchange traded funds (ETFs), commodities and high-yield markets are examples that warrant "closer surveillance" by regulatory authorities, ...