Bank Of Canada Warns Markets More Vulnerable To Sharp Correction Due To AI Concentration, Basis Trades

Bank Of Canada Warns Markets More Vulnerable To Sharp Correction Due To AI Concentration, Basis Trades The Bank of Canada said the global financial system has functioned (surprisingly) well through recent global shocks, but underscored the risk of a sharp asset price correction as well as vulnerabilities related to the role hedge funds are playing in debt markets. The central bank’s 2026 financial stability report released Thursday noted financial asset valuations have continued to...