Edition November 14, 2026

Financial stability in a rapidly changing world

Information gaps and growing interconnections could make private credit and stablecoins financial-stability risks sooner than conventional size measures suggest, underscoring the need for forward-looking surveillance.

Hedge fund participation is not inherently a problem and can provide liquidity in normal times, but rapidly unwinding highly leveraged positions creates vulnerability; market participants and authorities may lack a sufficient picture of those positions, especially across borders and jurisdictions. Timely information about stablecoin arrangements’ reserve composition, redemption mechanisms, custody, governance and operational dependencies may be missing.

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