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Author: tengen Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 63887  
Subject: The risk of low interest rates Date: 12/6/2012 1:53 PM
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The BoC just issued a review of the Canadian financial system. Of particular interest to me was the following comment:

"... the low interest rate environment in major advanced economies represents another risk to the financial system, both in Canada and globally. This risk involves increased vulnerability for financial institutions with long-duration liabilities (e.g., life insurance companies and pension funds), and increased incentives for excessive risk taking in a search for yield, which could distort the pricing of both real and financial assets"

Full review (PDF document): http://www.bankofcanada.ca/wp-content/uploads/2012/12/fsr-12...
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