The International Monetary Fund (IMF) has just released its Global Financial Stability Report (October 2025) — 126 pages of analysis on how stable (or not) the world’s financial system really is.
We read it for you and summed up the key points that every investor should know.
At Nectaro, we believe that understanding the bigger picture is just as important as choosing the right investment.
While we focus on simple, stable, and transparent income products, the world around us is changing — fast.
Knowing what’s happening globally helps retail investors make smarter, more confident decisions, instead of reacting to headlines or market noise.
Because even if your goal is steady, predictable growth, the context matters — and we’re here to make it clear.
The big picture
Global markets look calm, but the ground underneath is shifting.
Stock prices are high, the dollar is weakening, and investors are once again optimistic - maybe too optimistic.
In simple terms, the world feels stable, but it’s not as safe as it looks.
What’s happening
- Markets are up again. Stocks and bonds have bounced back after the spring turbulence — but valuations are now stretched.
- The US dollar fell by around 10%. Investors are diversifying into other currencies and assets.
- Interest rates are high but expected to ease. Central banks are walking a fine line between inflation and growth.
- Government debt keeps growing. Especially in the US and Europe, where public spending remains high — and that’s putting pressure on bond markets.
Where the risks are
1) Bond market stress. A sudden rise in yields could trigger large-scale sell-offs and test the banking system.
2) Bank–nonbank connections. Banks are increasingly tied to hedge funds, insurers, and private credit — making the system more fragile.
3) Private credit expansion. More retail and institutional money is flowing into high-yield lending, which could amplify downturns.
4) Stablecoins and tokenization. Digital assets backed by government bonds are growing fast — but their long-term impact on stability is still uncertain.
5) Rising public debt. Many countries are borrowing faster than they grow, leaving little room for new shocks
What it means for European investors
Europe enters 2026 with a stable but fragile financial system.
Banks are stronger than a few years ago, but still sensitive to market swings.
For individual investors, that means:
Focus on reliable, regulated income products rather than chasing quick returns.
Diversify across geographies and maturities.
Remember: predictability is power when global markets look unpredictable.
Bottom line
2025–2026 is not a year for panic, but not one for blind risk-taking either.
Stay calm, stay selective, and prioritize platforms that value transparency, regulation, and steady performance — just like Nectaro.
Because when the surface looks calm, it’s the foundation that really matters.
Full report: Global financial stability report, IMF, October 2025