In the current environment of easy financial conditions, asset valuations and leverage have risen. Asset price in-  Page 5 of 9  creases may reflect improved macroeconomic prospects, but also a search for yield. This has compressed spreads on high-yield debt and reduced risk premia.
Slide 8: Rising house prices in European cities In Denmark, we are especially focused on risks associated with house price developments. A number of European countries experienced housing bubbles in the years prior to the financial crisis, including Denmark.