Vulnerabilities in risky asset valuations, sovereign debt markets, and risky credit markets, including in private credit, previously highlighted by the FPC remain, and some have become more pronounced since the December 2025 Financial Stability Report. Notably, there has been a substantial increase in the use of leverage in equity markets. Developments in the Middle East have affected the global risk environment materially. Despite this, the UK financial system has remained resilient and has continued to support the UK real economy, emphasising the benefits of the resilience that has been built. Recent rapid advances ... (full story)