Posted: Jan 26, 2013 3:14 AM
Updated: Jan 26, 2013 3:14 AM
DAVOS, Switzerland (AP) A top international finance official is warning banks to be cautious about the prices of investments that have gone up sharply because of current low interest rates.
Jaime Caruana told The Associated Press in an interview that the low interest rates may have made it difficult to assess their true value and that banks "should be vigilant on the prices of some of these assets."
He is the managing director of the Bank for International Settlements, a global organization of central banks.
Investments such as riskier U.S. corporate bonds have gone up as investors search for higher interest yields. Those investments could fall when central banks eventually start raising rates as the economy recovers.
Caruana spoke at the World Economic Forum in Davos, Switzerland.