This report reviews conditions affecting the stability of the financial system by analyzing vulner abilities related to valuation pressures, borrowing by businesses and households, financial leverage, and funding risk . It also highlights several near-term risks that, if realized, could interact with such vulnerabilities . Investor appetite for risk generally appears to have returned to a level in the middle of its historical range but remains elevated for some important classes of assets . Debt loads of businesses are historically high . The core of the financial sector appears resilient, with leverage low and ... (full story)