Financial Stability Risks Rise: IMF Warns of Stretched Valuations, Sovereign Debt Stress, and Nonbank Vulnerabilities
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| Global financial stability concerns rise as the IMF highlights risks from stretched market valuations, sovereign debt pressures, and currency mismatches.(Representing AI image) |
Financial Stability Risks Rise with Stretched Valuations and Sovereign Debt Pressures
How the IMF’s Global Financial Stability Report Reveals New Fragilities — and What Policymakers, Investors, and Emerging Markets Should Do Next
The IMF’s October Global Financial Stability Report warns of elevated risks from stretched asset valuations, sovereign bond stress, and nonbank vulnerabilities — amplified by FX mismatches in emerging markets and a volatile dollar. This deep-dive explains the channels, data, policy options, and practical takeaways for investors and policymakers.
- Dr.Sanjaykumar pawar
Table of contents
- Introduction: Why the IMF’s warning matters now
- Snapshot of the headlines: the GFSR’s three core concerns
- What “stretched valuations” really mean (and why they’re dangerous)
- Sovereign-debt strains and bond market transmission channels
- Nonbank financial intermediation: the risk multiplier
- FX mismatches in emerging markets — mechanics and real-world examples
- Data-driven evidence: market moves and fiscal metrics to watch
- Policy options and best-practice playbook
- Investor playbook: how to think about allocation and risk management
- Suggested visuals (charts and infographics you should include)
- Conclusion: balancing vigilance with realistic pathways to resilience
- FAQ — succinct answers to common questions
- Sources and further reading
1 — Introduction: Why the IMF’s warning matters now
The International Monetary Fund’s latest Global Financial Stability Report (GFSR), released in October, comes at a moment when financial markets appear relatively stable on the surface. Equity markets have continued to rise, volatility indexes remain subdued, and investor sentiment has been generally positive. However, the IMF warns that this calm may be misleading. Beneath the market’s steady performance, structural vulnerabilities are quietly building, creating conditions where a sudden shock could spread quickly across the global financial system.
One of the central concerns highlighted in the report is stretched asset valuations. In several major markets, asset prices—especially equities and real estate—are no longer closely aligned with underlying economic fundamentals. Prolonged periods of low interest rates have encouraged investors to chase higher returns, pushing valuations to levels that could correct sharply if economic expectations shift.
At the same time, sovereign bond markets are facing mounting pressure, particularly in economies with high debt levels. As central banks continue to adjust interest rates and unwind balance sheets, governments may encounter higher borrowing costs. This introduces refinancing risks and increases vulnerability for countries already managing large fiscal deficits.
The third key vulnerability involves the growing influence of nonbank financial institutions (NBFIs)—such as hedge funds, private credit funds, and pension funds. These entities now hold a significant share of global financial assets but operate with fewer regulatory safeguards than traditional banks. Their activities, while beneficial for market diversification, can also amplify stress when liquidity tightens.
These risks are made more severe in emerging markets, where currency mismatches can quickly escalate if the U.S. dollar strengthens. For policymakers, portfolio managers, and financial strategists, the IMF’s warning is clear: the current stability should not be mistaken for resilience. Proactive risk assessment is essential to prevent minor disturbances from turning into broader systemic shocks.
2 — Snapshot of the headlines: the GFSR’s three core concerns
The IMF’s October Global Financial Stability Report (GFSR) draws attention to three interlinked vulnerabilities shaping today’s financial landscape. While markets may appear stable at a glance, the report stresses that the foundations are far more fragile. Understanding these risks is essential for investors, policymakers, and financial institutions preparing for an environment where small disruptions can trigger broader market stress.
1. High Equity and Credit Valuations Raise Correction Risks
The first warning in the GFSR is that equity and corporate credit valuations are running ahead of economic fundamentals. Strong market performance has been driven in part by optimism and liquidity conditions rather than sustained earnings growth or productivity gains. When prices exceed what underlying data supports, markets become more sensitive to negative news—whether it’s a surprise inflation reading, slowing growth, or geopolitical uncertainty. This sets the stage for sharper and more abrupt corrections, particularly in sectors where sentiment has been the primary driver of valuations.
2. Sovereign Bond Markets Under Growing Pressure
The second concern centers on sovereign debt markets, especially in countries with high public borrowing levels. Governments worldwide increased debt to manage pandemic fallout, support households, and stabilize markets. Now, with interest rates higher for longer, refinancing this debt is becoming more expensive. As investors grow cautious, bond yields can spike, pushing up borrowing costs and increasing the risk of disorderly price adjustments. This creates fiscal stress, particularly in emerging and developing economies that rely heavily on external financing.
3. Expanding Nonbank Financial Intermediation Amplifies Liquidity Risks
The third vulnerability highlighted is the rising role of nonbank financial institutions (NBFIs)—such as money market funds, open-end funds, hedge funds, and private credit vehicles. These players now handle a significant share of global capital flows but do not operate under the same liquidity and capital requirements as traditional banks. In times of stress, forced asset sales or margin calls within these institutions can quickly ripple outward, undermining market stability.
Interconnected Risks Create a Web of Vulnerability
These vulnerabilities are tightly linked. A sudden bond sell-off can lead to losses across NBFIs, forcing portfolio adjustments that trigger equity market repricing. At the same time, currency volatility—especially in emerging markets—can worsen sovereign credit conditions, making financial systems even more fragile.
The message is clear: today’s market stability should not be mistaken for resilience. Proactive monitoring and coordinated policy responses are essential to prevent manageable risks from evolving into systemic shocks.
3 — What “stretched valuations” really mean (and why they’re dangerous)
When the IMF warns about “stretched valuations,” it’s pointing to a growing disconnect between the price of an asset and the economic reality that should support it. Valuation metrics like price-to-earnings (P/E) ratios, credit spreads, or cyclically adjusted valuation measures give investors a sense of whether markets are priced reasonably relative to fundamentals such as corporate profits, economic growth, and interest rates. When prices climb faster than these fundamentals improve, markets start to look expensive — and that’s when valuations are considered stretched.
This matters because high valuations leave markets with less room to absorb bad news. If earnings fall short, funding conditions tighten, or economic growth slows, richly priced markets can correct much more sharply. Investors who bought at elevated prices may rush to sell, accelerating downturns. The situation becomes even more precarious in leveraged areas of the market, where investors borrow to amplify returns. Here, even a small price drop can trigger margin calls, forced selling, and broader volatility.
The IMF points out that after earlier market pullbacks, both equities and corporate credit have rallied strongly. But these rebounds have not been matched by equivalent improvements in underlying fundamentals. Corporate profit outlooks remain mixed, and growth expectations are still modest in many major economies. This disconnect means markets are increasingly sensitive to shocks — whether from inflation surprises, geopolitical tensions, or shifts in central bank policy.
In practical terms, stretched valuations are a warning flag. They signal that market confidence is doing more work than economic performance in supporting prices. When confidence wavers, the adjustment can be rapid and self-reinforcing. For investors, policymakers, and risk managers, the takeaway is clear: understanding valuation risks is essential to navigating a market environment where stability may be temporary and corrections may be sudden.
4 — Sovereign-debt strains and bond market transmission channels
Sovereign bond markets function as the backbone of global finance, and when stress builds there, it can ripple through nearly every part of the economy. The IMF’s October GFSR highlights how growing fiscal deficits, elevated public debt, and political uncertainty are putting pressure on government bond markets. When investors perceive higher risk, sovereign yields can rise quickly, and those shifts carry wide-reaching consequences.
First, higher yields translate into higher borrowing costs for governments. But the impact doesn’t stop there. Because sovereign bonds are used as benchmarks for lending rates, private borrowers—including companies and households—also face more expensive financing. This creates a tightening effect on the real economy, potentially slowing credit growth and investment.
Second, rising yields reduce the value of existing bonds held by pension funds, insurers, and asset managers. These institutions often hold large, long-duration portfolios. When yields rise, they face mark-to-market losses that can lead to margin calls, forced asset sales, or liquidity shortfalls. Such selling can accelerate price declines, creating a feedback loop that deepens market stress.
Third, the banking system is directly exposed. Many banks hold substantial amounts of domestic sovereign debt as part of their capital buffers or liquidity portfolios. When bond prices fall sharply, banks may face balance sheet pressure, and if they rely on short-term wholesale funding, the strain can become more severe. In some cases, this can lead to tightened credit supply, amplifying economic slowdowns.
The IMF emphasizes that with global public debt now in the tens of trillions, even a modest shift in investor sentiment can trigger rapid and disorderly repricing. This is particularly true in markets with concentrated investor bases or lower liquidity depth. Moreover, a sharp rise in yields in major economies can raise global funding costs, affecting nonbank financial institutions and emerging markets alike.
sovereign bond markets are not just indicators of economic stress—they are transmission channels that can carry shocks across borders and asset classes. Proactive risk management and credible fiscal frameworks are essential to prevent instability from spreading.
5 — Nonbank financial intermediation: the risk multiplier
Nonbank financial institutions (NBFIs)—including money market funds, open-end mutual funds, asset managers, hedge funds, and private credit vehicles—have become an increasingly prominent part of the global financial ecosystem. Their rise has brought new sources of credit, investment, and market liquidity, often filling gaps left as traditional banks tightened lending standards after the global financial crisis. However, this shift has also introduced new forms of systemic risk that are less visible and harder to manage.
Unlike banks, NBFIs operate with lighter regulatory oversight and without the same capital and liquidity requirements. Many of these institutions offer investors daily or frequent redemption rights while holding assets that are harder to sell quickly. This creates liquidity mismatches: if investors rush to withdraw funds, managers may be forced to sell illiquid assets at steep discounts. Such fire-sale dynamics can push prices lower across markets, even when fundamentals have not changed.
In addition, NBFIs often use leverage, including repo financing and derivatives, to boost returns. While leverage can amplify gains in a stable market, it also magnifies losses when conditions shift. When asset prices fall or volatility rises, margin calls can trigger rapid deleveraging, spilling stress into broader financial markets.
Crucially, NBFIs are interconnected with the banking system. Banks provide funding lines, act as counterparties in derivatives, and rely on NBFIs as major investors in their securities. As highlighted by the Bank for International Settlements and the Financial Stability Board, this web of exposure means that stress in NBFIs can quickly spread back into core financial institutions.
The IMF’s Global Financial Stability Report underscores this point: in a scenario where bond yields spike or currencies move sharply, NBFIs could transmit and amplify shocks across asset classes and borders. What begins as a localized repricing could escalate into system-wide stress, making NBFIs a critical focal point for risk monitoring and policy response.
6 — FX mismatches in emerging markets — mechanics and real-world examples
A key vulnerability highlighted in the IMF’s analysis is the foreign exchange (FX) mismatch common in many emerging markets. The basic issue is straightforward: governments and companies often borrow in foreign currencies, especially the U.S. dollar, but earn revenues in their local currencies. When their local currency weakens, the cost of repaying those dollar-denominated debts increases sharply. This means what looked like a manageable debt load can suddenly become much more expensive, raising the risk of default, forced asset sales, or painful fiscal adjustments.
Even though many emerging markets have made progress in recent years—expanding local-currency bond markets, accumulating foreign exchange reserves, and strengthening macroeconomic frameworks—some structural vulnerabilities remain. In several countries, foreign currency borrowing is concentrated in sectors with limited hedging options, such as infrastructure firms or state-owned enterprises. Others rely heavily on a small pool of foreign investors, making them more prone to sudden capital outflows when global financial conditions tighten.
Real-World Examples
The IMF points to recent stress episodes to illustrate how quickly FX mismatches can create instability:
- Turkey has faced repeated periods of currency depreciation, which sharply increased the debt burden for corporates with large foreign-currency liabilities.
- Argentina has struggled with limited access to local financing, forcing reliance on external borrowing that became unsustainable as the peso weakened.
- Sri Lanka experienced severe pressure when external debt repayments surged while foreign reserves fell, contributing to a sovereign default in 2022.
Why Dollar Strength Matters
When the U.S. dollar appreciates, emerging markets see their debt-service costs rise, sovereign bond spreads widen, and investor confidence weaken. These pressures can be especially intense where nonbank financial institutions hold foreign-exposed assets, creating channels for rapid market stress.
FX mismatches remain a critical fault line linking currency movements to broader financial stability risks across emerging economies.
7 — Data-driven evidence: market moves and fiscal metrics to watch
While the IMF’s Global Financial Stability Report focuses on broad risks, it also points to specific indicators that offer early warning signals. Tracking these data points helps investors, policymakers, and financial risk managers understand when rising vulnerabilities are transitioning into active stress. Below are key metrics that reflect the health of equity markets, sovereign debt sustainability, nonbank liquidity conditions, and exposure to currency risk—each essential to assessing financial stability.
1. Equity Valuation Gauges Signal Market Sensitivity
A useful starting point is monitoring equity valuation metrics, such as the Cyclically Adjusted Price-to-Earnings (CAPE) ratio and market-wide P/E ratios. When these indicators sit well above long-term averages, markets are more likely to overreact to negative surprises. According to IMF chart data, several major equity markets are already showing stretched valuations, meaning even modest earnings disappointments could trigger sell-offs. Investors should watch whether earnings forecasts continue to justify current prices—or whether sentiment is carrying valuations too far.
2. Sovereign Yield Levels and Curve Slope Reflect Fiscal Strain
The shape of the sovereign yield curve, especially the difference between 2-year and 10-year yields, offers insight into growth expectations and debt stress. Rapid steepening—where long-term yields rise faster—can signal that investors are demanding higher compensation for fiscal risk. Likewise, comparing 10-year yields across countries helps identify where investor confidence is weakening. Countries with high public debt and rising refinancing costs are especially vulnerable to sudden shifts in sentiment.
3. Liquidity Indicators in NBFIs Reveal Amplification Risks
Because nonbank financial institutions operate with lighter regulatory oversight, liquidity metrics are essential. Key indicators include fund redemption rates, bid-ask spreads in corporate and government bonds, and repo market haircuts. Wider spreads or rising haircuts indicate diminishing liquidity, meaning markets could struggle to absorb selling pressure. BIS and FSB frameworks help benchmark these thresholds.
4. FX-Adjusted Debt Metrics Expose Emerging Market Vulnerability
Emerging markets with high levels of foreign currency-denominated debt face elevated risks when the U.S. dollar strengthens. Tracking external debt service ratios and public foreign currency debt-to-GDP helps identify where currency swings could turn routine borrowing costs into fiscal crises.
5. Investor Base Concentration Affects Shock Absorption
Finally, monitoring the share of sovereign debt held by non-residents provides insight into vulnerability to capital outflows. A narrow investor base means that retrenchment can trigger rapid bond market stress.
Regular monitoring of these metrics enables early action—before instability becomes systemic.
8 — Policy options and best-practice playbook
The IMF’s Global Financial Stability Report (GFSR) emphasizes that while vulnerabilities are rising, there is still time to address them—if policymakers act proactively. The recommended approach is layered, reflecting the fact that financial stability spans central banking, fiscal management, regulatory oversight, and international cooperation. Below is a breakdown of key policy strategies that can help reduce risks and strengthen resilience across the financial system.
1. Central Banks and Macroprudential Authorities: Maintain Buffers and Manage Expectations
Central banks play a critical role in shaping financial stability, not only through interest rate policy but also through how clearly they communicate with markets. The GFSR stresses that macroprudential buffers—such as countercyclical capital requirements, liquidity coverage ratios, and stress testing frameworks—should remain active and flexible. These tools provide banks with shock absorbers during times of stress, ensuring credit can continue flowing even when markets tighten.
Just as important is communication strategy. Sudden or ambiguous policy messages can trigger rapid shifts in market expectations, amplifying volatility. Transparent forward guidance—where central banks clearly explain their decision-making framework—helps reduce uncertainty. Additionally, central banks should expand monitoring of nonbank financial institutions (NBFIs) to identify liquidity mismatches and leverage risks early, rather than reacting after stress emerges.
2. Fiscal Authorities: Strengthen Debt Sustainability and Market Resilience
For governments, the priority is ensuring that public debt remains manageable even under changing interest rate conditions. This means adopting prudent debt management strategies, such as:
- Extending debt maturities to reduce rollover risk.
- Developing deeper local-currency bond markets to limit exposure to external borrowing and currency depreciation.
- Diversifying the investor base, so that funding is not overly dependent on short-term or foreign investors.
Stronger fiscal frameworks also help anchor market confidence. When investors believe a government has credible plans to manage debt and spending, they are less likely to demand higher risk premiums or sell off sovereign assets.
3. Financial Regulators: Close Gaps in Oversight for NBFIs
The rapid growth of nonbank financial intermediation has created new liquidity and leverage channels that are not always captured by existing regulatory frameworks. To reduce systemic risk, regulators should:
- Introduce minimum liquidity buffers for open-end funds, so they can meet withdrawals without forced selling.
- Improve data collection on leverage, collateral practices, and maturity transformation across hedge funds, private credit funds, and other NBFIs.
- Develop real-time monitoring tools that identify market stress before it spreads.
The goal is not to limit innovation, but to ensure that risk does not accumulate in areas where it is least visible.
4. International Cooperation: Strengthen Global Safety Nets
Financial stress often travels across borders—especially when the U.S. dollar strengthens and funding conditions tighten. In these moments, coordinated responses are critical. The IMF notes that swap lines between central banks, cross-border liquidity support, and multilateral lending programs can function as stabilizing anchors. These tools help prevent localized stress—from currency swings or bond sell-offs—from snowballing into global contagion.
For emerging market economies, technical support from international institutions can improve debt management systems, regulatory capacity, and crisis-response planning.
Stability Requires Preparedness
The GFSR’s message is clear: stability today does not guarantee resilience tomorrow. By maintaining buffers, improving transparency, closing regulatory blind spots, and strengthening international cooperation, policymakers can reduce the risk that shocks turn into crises. This balanced, forward-looking approach ensures the financial system remains robust—even when external conditions shift suddenly.
9 — Investor playbook: allocation and risk management
The IMF’s recent warnings are not about predicting a crisis tomorrow—they are about preparing for a world in which market conditions can shift quickly and sharply. For investors, portfolio managers, and asset allocators, the key is not to panic but to adjust positioning and risk frameworks so that a sudden rise in volatility or a tightening in financial conditions does not lead to forced selling or large drawdowns. Below is a practical, human-centered guide to interpreting the IMF’s signals and applying them in a way that strengthens your strategy rather than derails it.
1. Stress-Test Portfolios Against Realistic Shock Scenarios
Even if markets look calm today, investors should prepare for simultaneous shocks. The IMF highlights the risk of a coordinated move in equities, sovereign yields, and the U.S. dollar. That means stress-testing your portfolio, not just for one scenario, but for a combination:
- A 20–30% drop in equities
- A 150–300 basis point (bps) rise in sovereign bond yields
- A strong appreciation in the U.S. dollar, particularly against emerging market currencies
Simultaneous stress is more realistic than isolated shocks because of the way financial systems are now interconnected. Running these scenarios helps identify hidden vulnerabilities—especially exposures that look safe in normal times but may turn risky under liquidity strain.
2. Manage Duration Risk Carefully—Rebalance Sovereign Bond Exposure
With global public debt at historically high levels and central banks signaling “higher-interest-rates-for-longer,” long-duration bonds carry heightened sensitivity to rate movements. If yields rise, the price of these bonds can fall sharply. To guard against this:
- Reduce concentration in long-duration, low-coupon sovereign bonds
- Consider shorter-duration securities, which provide flexibility and reduce interest rate risk
- Evaluate inflation-linked bonds (ILBs) if inflation remains sticky or unpredictable
This is not a call to exit sovereign bonds entirely. Fixed income still serves a purpose—income stability and downside protection. The goal is simply to avoid being overly exposed to assets that could reprice violently if borrowing costs continue to climb.
3. Evaluate Counterparty Risk in Nonbank Financial Institutions (NBFIs)
A growing share of global capital flows through nonbank financial intermediaries—money market funds, open-end mutual funds, private credit funds, REITs, and hedge funds. While they offer diversification and sometimes attractive yields, many have liquidity mismatches, meaning:
- They allow investors to withdraw quickly,
- But hold assets that are slow or costly to sell.
In periods of stress, this mismatch can lead to forced selling, amplifying market volatility. To safeguard your portfolio:
- Review redemption terms and lock-up periods before allocating funds
- Avoid strategies where illiquid assets back daily liquidity promises
- Ask direct questions about leverage and liquidity buffers
The principle is simple: If you can’t understand how liquidity is managed, you are taking more risk than you think.
4. Hedge Foreign Exchange (FX) Risk in Emerging Markets
Emerging market opportunities often look attractive, but currency mismatches can wipe out returns during a dollar rally. The IMF highlights that when the dollar strengthens, countries with external financing needs or limited domestic investor bases face sharper currency and credit pressures.
To manage this risk:
- Hedge FX exposure selectively, especially in markets with external debt vulnerabilities
- Favor countries with deep local investor bases and stronger reserve buffers
- Consider hard-currency bonds where local-currency volatility is high
FX risk is not inherently bad—but unhedged FX exposure during a global tightening cycle can be brutal for portfolio performance.
5. Prioritize Liquidity: Avoid Being Forced to Sell in a Stress Scenario
Liquidity is often overlooked during stable periods, yet it becomes the critical factor when markets seize. The goal is to hold assets that can be sold quickly and without steep price discounts.
This means:
- Maintain a core allocation to high-quality, liquid instruments
- Avoid overconcentration in private or opaque markets, unless lock-ups align with your investment horizon
- Regularly review bid-ask spreads, trading volumes, and clearing conditions
In liquidity crises, price is a function of urgency—investors with flexibility always outperform those who must sell.
A Balanced Mindset: Defensive, Not Bearish
The IMF is not advising investors to abandon markets or adopt ultra-conservative positioning. Equities, credit, and emerging markets can still deliver compelling returns. The message is about reducing tail risk, not eliminating risk entirely.
Key priorities:
- Stay invested, but stay prepared
- Diversify liquidity sources
- Avoid concentration in fragile asset classes
- Monitor external financing and balance-sheet conditions
In a world of elevated debt, shifting interest-rate cycles, and expanding nonbank financial activity, the best strategy is resilience built on flexibility.
Investing today is less about predicting the next shock—and more about ensuring that when shocks happen, you remain in control rather than the market controlling you.
10 — Suggested visuals (charts and infographics you should include)
- IMF GFSR headline chart showing the three packed risks (cover graphic / executive-summary infographic).
- Valuation vs. fundamentals scatterplot (market P/E vs. earnings growth) — to show “stretched” pockets. Use IMF or World Bank market data.
- Sovereign yield map: 10-year yields across a selection of advanced and emerging markets (heatmap). Data from central banks/IMF.
- NBFI exposure flow diagram: show how fund redemptions → asset sales → liquidity spiral → bank/NBFI counterparty stress (BIS/FSB frameworks).
- FX mismatch bar chart: share of external debt in foreign currency for selected emerging markets (World Bank / IMF data).
11 — Conclusion: balancing vigilance with realistic pathways to resilience
The IMF’s GFSR is a timely reminder that market calm can obscure potent vulnerabilities. Stretched valuations make markets more sensitive to adverse news; sovereign bond stresses can transmit losses through portfolios and banks; and NBFIs increase the chance that liquidity shocks become systemic. For emerging markets, FX mismatches remain the critical domestic vulnerability. The policy response is both macro and micro: strengthen fiscal positions and debt management, close regulatory gaps around nonbank intermediation, and enhance market liquidity and transparency — while investors adopt prudent risk-management measures. The upside is that many countries have built buffers since earlier crises; the danger is complacency. Vigilance, coordination, and data-driven policies will determine if the next shock is manageable or disorderly.
12 — FAQ
Q1: Is a global recession imminent because of these risks?
A: Not necessarily. The GFSR warns of elevated financial risks — not an immediate global recession. But a severe market correction could tighten financial conditions and slow growth, so vigilance matters.
Q2: Which countries are most exposed to FX mismatch risk?
A: Exposure varies. Countries with large foreign-currency public debt, shallow local-currency bond markets, and narrow investor bases are most vulnerable. See IMF and World Bank country-level data for specifics.
Q3: Do NBFIs pose the same systemic risk as banks?
A: They pose different risks. NBFIs can trigger liquidity spirals and amplify market moves; their rapid growth and interlinkages with banks make them systemic in a stress event. Regulatory reforms target these gaps.
Q4: Should retail investors sell equities now?
A: Investment decisions depend on time horizon and risk tolerance. Rather than panic selling, consider rebalancing, stress-testing your portfolio, and ensuring diversified, liquid positions.
13 — Sources and further reading (credible sources with links)
Below are the primary credible sources referenced in this piece — click any title to read the original material.
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IMF — Global Financial Stability Report, October 2025: “Shifting Ground beneath the Calm” (full report and executive summary).
https://www.imf.org/en/Publications/GFSR/Issues/2025/10/14/global-financial-stability-report-october-2025 -
IMF Blog — “Good Policies (and Good Luck) Helped Emerging Economies Better Resist Shocks” (analysis on EM resilience and local-currency debt).
https://www.imf.org/en/Blogs/Articles/2025/10/06/good-policies-and-good-luck-helped-emerging-economies-better-resist-shocks -
Bank for International Settlements (BIS) — Banks’ interconnections with non-bank financial intermediaries (horizon scanning report) (analysis of bank–NBFI links and stress scenarios).
https://www.bis.org/bcbs/publ/d598.pdf -
Financial Stability Board (FSB) — Non-Bank Financial Intermediation (workstreams and reports on money market funds and open-end fund reforms).
https://www.fsb.org/work-of-the-fsb/financial-innovation-and-structural-change/non-bank-financial-intermediation/ -
World Bank — Global Economic Prospects / External debt and EM data (data and analysis on emerging market external vulnerability).
https://openknowledge.worldbank.org -
Reuters coverage of IMF GFSR release (context and market reaction) — for market reporting and quotes.
https://www.reuters.com
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