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EssentialThe Essential Conversation

Everything You Need To Know About Liquidity

Featuring Michael Howell and Ash Bennington

Aug 22, 2022 • 57 minutes

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Essential

The Essential Conversation

Everything You Need To Know About Liquidity

"The liquidity index that we calculate," says CrossBorder Capital founder Michael Howell, "is now in freefall."

Featuring Michael Howell and Ash Bennington

Aug 22, 2022 • 57 minutes

“Liquidity” is a concept with two meanings investors need to know. The first, basically, is at the individual security level: the ability to trade a stock or a bond or an option at a given price on a given day. Call it “market liquidity.” The second is more complex, and it involves the functioning of the entire global financial system. Call it “funding liquidity.” “So,” as Michael Howell explains it, “if market liquidity starts to deteriorate, it's really a heads up to the fact that funding liquidity is already going down significantly. And that's very much the case at the moment.” Is it a crisis? Well, the CrossBorder Capital Global Liquidity Index has fallen from levels around 80 to barely 20. Howell, the founder of CrossBorder Capital, joins Ash Bennington to talk about what the Federal Reserve has already done to tighten financial conditions, when it might turn from its hawkish stance, and how markets will respond to a continuing liquidity squeeze. Recorded on August 15th, 2022. Show More

The Essential Conversation is the world's premier financial-market-focused conversation series. The smartest people in markets, finance, economics, and business engage in deep-diving discussions about the global macro landscape, generating actionable takeaways that can help your decision-making process. Tune in to peer-to-peer conversations between the brightest minds in the investing world, and tune up your portfolio.

More Episodes

The Essential Conversation is the world's premier financial-market-focused conversation series. The smartest people in markets, finance, economics, and business engage in deep-diving discussions about the global macro landscape, generating actionable takeaways that can help your decision-making process. Tune in to peer-to-peer conversations between the brightest minds in the investing world, and tune up your portfolio.

More Episodes

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