Most asset classes in the Western world are potentially overbought meaning that potential bubbles exist in certain markets, Deutsche Bank boss John Cryan warned.

Pointing out that volatility today is "remarkably cheap", the chief executive officer (CEO) of Germany's largest lender noted that this is despite a flare-up or continuation of tensions in several parts of the globe in recent months and indicates a surprising sanguinity among traders.

So far this year, the tech-heavy Nasdaq index has soared over 18 percent while the S&P 500 and Dow Jones indexes have each moved around 10 percent higher. U.S. bond yields at the 10-year and 30-year maturities have fallen during 2017 (meaning their prices have risen) while gold this week hit a twelve-month high.

"The interesting thing about the markets today is that obviously they pay some regard to these hotspots but they don't seem to be paying too much regard because we see very high asset prices in almost all asset categories," Cryan told an audience on Wednesday at Handelsblatt's annual banking summit in Frankfurt.