“A former hedge fund manager whose firm made billions during the global financial crisis is ready to pounce on volatility again, as he sees threats to market stability at a level not seen since 2008....

"The number of fault lines out there today are greater, and the chances of something going wrong are significantly greater, but risk prices have come down,” Diggle said, drawing comparison with conditions under more than a decade of easy monetary policies. 

"So we are kind of in an analogous situation to where we were in 2005 to 2007.”

Among the potential flash points are the stretched valuations of US stocks, the country’s prime office market glut, elevated federal debt and tight credit spreads...."