They note that there is “heightened risk-taking in some financial markets” before elaborating on that as per the below:
Financial markets play an important role in supporting the economy and provide a substantial amount of finance to businesses. If financial markets do not function properly, businesses may be unable to raise funds through those markets.
There is evidence that investors are taking higher levels of risk in some global markets. For example, there are fewer protections in place when investors lend to companies with high levels of debt in so-called “leveraged loan” markets. And the prices of some financial assets appear high relative to historical norms.
We are monitoring these risks closely. We are also working with UK and other international authorities to make market-based finance more resilient to shocks, so that financial markets can support the economy in bad times as well as good.
Cryptoasset markets continue to grow rapidly, but currently pose limited risk to UK financial stability. Regulation needs to develop quickly enough, both domestically and at a global level, to address the risks they could pose in the future.
On financial resilience, they note that banks are strong enough to continue to support households and businesses through the recovery in the UK economy