Bogotá, May 15, 2015
The expected increase in interest rates in developed countries and especially in the United States is not the greatest concern and risk faced towards the future by international reserve portfolio managers and funds of official institutions.
No, the true risk is that the interest rates in the United States do not rise and remain at the very low levels of the last few years. A situation of low volatility and complacency in financial markets, where traders have become accustomed to low levels of interest rates, already for several years, could reinforce the concerns regarding global financial stability arising from excessive risk-taking in the search for additional yield in times when recovery of most financial assets generates questions.
This was one of the most important conclusions of the 3rd Seminar "Management of Risks in Environments of Low Returns and High Uncertainty" held by the Latin American Reserve Fund (FLAR) and the Centre for Latin American Monetary Studies (CEMLA), last week in Bogota.