Global Risk-Taking Binge Is Worrying Central Banks

Global central banks are approaching the end of the year with a collective shudder at the risky behavior that their low interest-rate policies are encouraging.

Policy makers from European Central Bank and the Federal Reserve are among those raising cautionary flags at potentially unsafe investing stoked by their efforts to flood economies with ultra-cheap money. Stock indexes from the U.S. to India are at records, and low sovereign bond yields have pushed funds into property seeking better returns.