When interest rates eventually start rising, the shift in monetary conditions will create winners and losers, says a new report from the International Organization of Securities Commissions (IOSCO).

IOSCO published a new report Wednesday that examines potential risks in securities markets. Among other things, it notes that asset prices have increased, while volatility remains low, in a very low interest rate environment. This, in turn, has set off a search for yield, it says. Additionally, leverage has rebounded, too.

“While increasing leverage can signal returning confidence in the financial system, it could become a source of potential risk when interest rates increase. This is of particular concern in the case of leveraged, complex and often opaque products,” it says.

The search for yield is also impacting emerging markets. “Capital inflows into emerging markets have recovered from the effect of the [U.S. Federal Reserve’s] suggestion in 2013 of tapering. But non-bank credit provision accounts for a growing portion of cross border flows to emerging markets,” it says. “The volatility of these flows could create a point of risk entry — for example, if triggered by the unwinding of accommodative monetary policy in the developed world.”

The report highlights the continued growth of derivatives markets, and the increasing systemic importance of central counterparties. “CCPs have developed business models and risk management procedures that have proved robust so far. But as the their business becomes more complex, and as market volatility eventually returns to higher levels, these models and procedures come into question,” it warns.

A lack of disclosure about certain risk transfer practices, such as re-hypothecation and collateral transformation, which sometimes occurs off-balance sheet, “makes it hard to assess these activities and can contribute to risk in the financial system,” the report says.

The report notes also that, in the wake of the LIBOR and other industry scandals, “risks related to corporate governance may build-up in the financial system, signalling the need for regulators to better understand how corporate incentives and internal structures contribute to generating those risks.”