Category: Business

Reuters reported that the Bank for International Settlements said rising public debt, financial fragilities and doubts about the sustainability of the AI boom were major global risks. Growth has been supported by investment in AI, the BIS said, but warned that financing for the boom is getting more debt-laden and complex, with high valuations and investor complacency making core bond markets more fragile. The central bank umbrella group also warned that a new sovereign-financial stability nexus is taking shape as large, leveraged hedge funds dominate parts of sovereign debt markets.