Stock, bond markets could see sharp declines: U.S. financial watchdog

Stock and bond markets may be riding for a fall as equity prices soar and interest rates stay low, a federal monitor of U.S. financial stability said on Tuesday, warning that such a tumble could inflict serious damage on banks, life insurers and other important parts of the economy. At the same time, commercial real estate prices have climbed while capitalization rates, which measure properties' returns, are close to record lows, it found. A price shock in one of these markets could threaten fin