Global liquidity levels have stabilized following the Q4 dip. Four factors are underpinning them: (1) Improving Central Bank liquidity, due to the PBoC and ECB. Fed liquidity remains a cause for concern. (2) Collateral values (bonds) which are picking up, in part helped by (3) the loss of momentum in the US dollar. And finally (4), bond market... See more

A typical liquidity cycle lasts 5-6 years from trough-to-trough and, based on the October-2022 low point, we expect the current cycle to peak around Q4 this year.