Global Liquidity Watch: Weekly Update

Global Liquidity - Improving?

Global Liquidity growth stalled in October and November. Three key factors - weaker Central Bank liquidity, faltering collateral values (bonds) and a strengthening US dollar – all played their part. There is a hint of change in the latest data. Central Bank liquidity growth is recovering, collateral values are picking up and the US dollar has lost some momentum. Added to this, bond market volatility is moving lower. This is good for the collateral multiplier.