Economy🌐 Available in EnglishJune 16, 2026

The world is more dangerous. Why is risk cheaper? - Financial Times

The world is more dangerous. Why is risk cheaper? - Financial Times
Financial Times
F
Financial Times
Original Source

The world faces unprecedented geopolitical and economic instability, yet financial markets price risk as negligible, creating a stark disconnect between political reality and asset valuations. This systematic underpricing of danger signals a potential financial bubble in the making.

Subscribe to read

* Sign In
* Subscribe

Open side navigation menuOpen search bar

SubscribeSign In

Popular Searches

* What is the latest news on the UK economy?
* Western support for Ukraine
* How will AI be regulated?
* UK inflation vs the world
* How will the UK economy fare in 2026?

* Home
* World
Sections

+ World Home
+ Middle East war
+ Global Economy
+ UK
+ US
+ China
+ Africa
+ Asia Pacific
+ Emerging Markets
+ Europe
+ War in Ukraine
+ Americas
+ Middle East & North Africa
Most Read

+ Trump administration considers $300bn fund for Iran if deal is upheld
+ Burnham plans to give Starmer ‘space’ to resign after by-election, say allies
+ US-Iran deal must be ‘material’ for Strait of Hormuz to reopen, tanker giant warns
+ Gavin Newsom says Trump has ordered justice department to investigate him
+ The world is more dangerous. Why is risk cheaper?
* US
Sections

+ US Home
+ US Economy
+ US Companies
+ US Politics & Policy
Most Read

+ Trump administration considers $300bn fund for Iran if deal is upheld
+ Gavin Newsom says Trump has ordered justice department to investigate him
+ The world is more dangerous. Why is risk cheaper?
+ JPMorgan plans Chase expansion into Europe’s largest markets
+ Iran deal leaves Trump fighting a war at home
* Companies
Sections

+ Companies Home
+ Energy
+ Financials
+ Health
+ Industrials
+ Media
+ Professional Services
+ Retail & Consumer
+ Tech Sector
+ Telecoms
+ Transport
Most Read

+ Private equity bosses warn of AI threat to bets on law and accountancy
+ US-Iran deal must be ‘material’ for Strait of Hormuz to reopen, tanker giant warns
+ The reclusive heirs in line for billions when Europe’s top tankmaker lists
+ Rathbones shares sink 18% as it halts investments by high-risk clients
+ The world is more dangerous. Why is risk cheaper?
* Tech
Sections

+ Tech Home
+ Artificial intelligence
+ Semiconductors
+ Cyber Security
+ Social Media
Most Read

+ Private equity bosses warn of AI threat to bets on law and accountancy
+ How the AI boom turned a buyout deal into one of history’s most lucrative
+ Anthropic scrambles after Trump administration freezes its top AI models
+ OpenAI spending hit $34bn last year ahead of planned IPO
+ SpaceX shares gain for second day after blockbuster debut
* Markets
Sections

+ Markets Home
+ Alphaville
+ Markets Data
+ Private markets
+ Equities
+ Bonds
+ Currencies
+ Commodities
+ Crypto
+ Monetary Policy Radar
+ Wealth Management
+ Moral Money
+ ETF Hub
+ Asset management
Most Read

+ Private equity bosses warn of AI threat to bets on law and accountancy
+ Rathbones shares sink 18% as it halts investments by high-risk clients
+ The world is more dangerous. Why is risk cheaper?
+ JPMorgan plans Chase expansion into Europe’s largest markets
+ Lessons from Ireland’s Revolut revolution
* Climate
* Opinion
Sections

+ Opinion Home
+ Columnists
+ The FT View
+ The Big Read
+ Lex
+ Obituaries
+ Letters
Most Read

+ The human brain is not a machine
+ Lessons from Ireland’s Revolut revolution
+ Platner and Starmer remind us that character matters in politics
+ A war without victors
+ The least bad exit from Trump’s war of choice
* Lex
* Stock Picking Game
* Life & Arts
Sections

+ Life & Arts Home
+ Arts
+ Books
+ Food & Drink
+ FT Magazine
+ House & Home
+ Style
+ Puzzles
+ Travel
+ FT Globetrotter
Most Read

+ Is cold-water swimming good for you, really?
+ OnlyFans: Inside the Machine — the dark side of the creator economy
+ The best environment, science and technology books to read this summer
+ The best crime and thriller books to read so far this year
+ Where to find London’s most exciting Brazilian food
* How To Spend It

MenuSearch

* Home
* World
* US
* Companies
* Tech
* Markets
* Climate
* Opinion
* Lex
* Stock Picking Game
* Life & Arts
* How To Spend It

Financial Times

SubscribeSign In

Popular Searches

* What is the latest news on the UK economy?
* Western support for Ukraine
* How will AI be regulated?
* UK inflation vs the world
* How will the UK economy fare in 2026?

The world is more dangerous. Why is risk cheaper?

Subscribe to unlock this article

Join FT Edit

Only

$4.99

per month

Access to eight surprising articles a day, hand-picked by FT editors. For seamless reading, access content via the FT Edit page on FT.com and receive the FT Edit newsletter.

Keep reading for $4.99

Explore more offers.

Trial

$1

for 4 weeks

Then

$75

per month. Complete digital access to quality FT journalism on any device. Cancel or change your plan anytime during your trial.

Select

* Global news & analysis
* Expert opinion
* FT App on Android & iOS
* FT Edit: Access on iOS and web
* FirstFT: the day's biggest stories
* 20+ curated newsletters
* Follow topics & set alerts with myFT
* FT Videos & Podcasts
* 20 monthly gift articles to share
* Lex: FT's flagship investment column
* 15+ Premium newsletters by leading experts
* FT Digital Edition: our digitised print edition

Standard Digital

$45

per month

Essential digital access to quality FT journalism on any device. Pay a year upfront and save 20%.

Select

* Global news & analysis
* Expert opinion
* FT App on Android & iOS
* FT Edit: Access on iOS and web
* FirstFT: the day's biggest stories
* 20+ curated newsletters
* Follow topics & set alerts with myFT
* FT Videos & Podcasts
* 10 monthly gift articles to share

Premium Digital

Complete coverage

$75

per month

Complete digital access to quality FT journalism with expert analysis from industry leaders. Pay a year upfront and save 20%.

Select

* Global news & analysis
* Expert opinion
* FT App on Android & iOS
* FT Edit: Access on iOS and web
* FirstFT: the day's biggest stories
* 20+ curated newsletters
* Follow topics & set alerts with myFT
* FT Videos & Podcasts
* 20 monthly gift articles to share
* Lex: FT's flagship investment column
* 15+ Premium newsletters by leading experts
* FT Digital Edition: our digitised print edition

Check whether you already have access via your university

or organisation.

Terms & Conditions apply

Explore our full range of subscriptions.

For individuals

Discover all the plans currently available in your country

DigitalPrintPrint + Digital

For multiple readers

Digital access for organisations. Includes exclusive features and content.

FT Professional

Why the FT?

See why over a million readers pay to read the Financial Times.

Find out why

Useful links

Support

Help CentreContact UsAbout UsAccessibilityCareersSuppliers

Legal & Privacy

Terms & ConditionsPrivacy PolicyCookie PolicyManage CookiesCopyrightSlavery Statement & Policies

Services

Share News Tips SecurelyIndividual SubscriptionsProfessional SubscriptionsRepublishingExecutive Job SearchAdvertise with the FTFollow the FT on XFT ChannelsFT Schools

Tools

PortfolioFT AppFT Digital EditionFT EditAlerts HubBusiness School RankingsSubscription ManagerNews feedNewslettersCurrency Converter

Community & Events

FT Live EventsFT ForumsFT Leaders Academy

More from the FT Group

Markets data delayed by at least 15 minutes. © THE FINANCIAL TIMES LTD 2026. FT (Financial Times) and ‘Financial Times’ are trademarks of The Financial Times Ltd.
The Financial Times and its journalism are subject to a self-regulation regime under the FT Editorial Code of Practice.

Edition:

International

UK

Subscribe for full access

Top sections

* Home
* World
+ Middle East war
+ Global Economy
+ UK
+ US
+ China
+ Africa
+ Asia Pacific
+ Emerging Markets
+ Europe
+ War in Ukraine
+ Americas
+ Middle East & North Africa
* US
+ US Economy
+ US

🔗 Share Article

Tags:#الأسواق المالية#المخاطر الجيوسياسية#الاستقرار الاقتصادي#السندات والائتمان#الاحتياطي الفيدرالي#الفقاعات المالية

For Context

Related reads from the same topic or latest developments