The International Monetary Fund (IMF) published chapters 3 and 4 from its Global Financial Stability Report that cover the various roles of safe assets, the effects of different regulatory, policy, market distortions, and potential future pressure points and the financial impact of longevity risk. The chapters find that the shrinking universe of safe assets and the upward demand pressures have negative implications for global financial stability. They add that the number of sovereigns whose debt is considered safe has fallen. Poor securitization has curbed the role of securitized instruments as safe assets. The IMF recommends that new prudential rules should provide sufficient differentiation in the safety characteristics of eligible safe assets and notes that demand pressures related to the use of safe assets as collateral for central counterparty (CCP) default funds would be alleviated by flexibility in the definition of acceptable safe assets.