The IMF names an AI-driven market correction as one of three rising risks to financial stability, and points to circular deals between AI firms
Its review of 14 deals since 2023 found about $300bn of equity, $650bn of debt and $1.4tn of future revenue commitments.
The International Monetary Fund's Global Financial Stability Report, titled “Resilience, Risk, and Transformation”, came out on 13 October. It says markets have been resilient but stability risks remain elevated. A blog by IMF officials Athanasios Vamvakidis and Jason Wu names three risks that have been rising: an artificial intelligence-driven market correction, a sharper rise in sovereign bond yields, and cyberattacks.
The report warns that “weaker or less durable investment and profitability in artificial intelligence” could pull AI-related asset prices down, and that “Corrections could be amplified by rising leverage and concentrated exposures.” The blog points to circular financing between AI firms, in which equity and debt flow between AI firms. Its review of 14 such transactions since 2023 found about $300bn of equity investment, $650bn of debt and $1.4tn of future revenue commitments. The blog adds: “Hyperscalers are borrowing more; investors have been leveraging to invest in AI stocks.”
The IMF calls for limits on “leverage and liquidity mismatches in AI, private credit, and other nonbank financial sectors”, and says higher bond yields could also depress the valuations of AI-related assets.
- Confirmed The IMF names an AI-driven market correction, a sharp rise in sovereign yields and cyberattacks as rising risks. IMF blog
- Confirmed Its review of 14 transactions since 2023 found about $300bn of equity, $650bn of debt and $1.4tn of revenue commitments. IMF blog
- Confirmed The October 2026 Global Financial Stability Report is titled “Resilience, Risk, and Transformation”. IMF
Caught up on October 17, 2026, after it was missed at the time · front page