Bundesbank Says Low Interest Rates Spurring Some Risky Behavior

Low interest rates globally are prompting investors to take too many risks in some asset classes, the Bundesbank said.

“Signs of an excessive search for yield are particularly evident in the corporate-bond and syndicated-loan markets,” Bundesbank Vice President Claudia Buch said in Frankfurt today, presenting the German central bank’s annual financial stability report. “The longer the period of low interest rates lasts, the greater the risk of exaggerations in certain market segments.”