On our calculations, as much as three- quarters of primary transactions now consist of debt roll-overs rather than new capital raising. These refinancings require liquidity in the form of balance sheet capacity within the financial sector. In addition, liquidity itself needs good-quality debts, like US Treasury bonds, to back it. According to the

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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