Former dep BoJ governor: Nakaso says global policies to remain looser for longer

• Leverage build up across world getting to high levels.
• China is a particular strong example of this.
• Leverage is building up in China again after the deleveraging.
• Collateralized loan obligations (CLO) is reminiscent of the run up to the subprime loan crisis.
• Global central banks reverting back to accommodation.
• Policies likely to remain accommodative for longer.
• Renewed accommodation is good in the short-term, but could be negative in the longer term due to more risk.

argued former Bank of Japan deputy governor, Nakaso.