Liquidity Insights Overview | J.P. Morgan Asset Management

Liquidity Insights

Discover our vast array of liquidity insights covering global investment news and trends that may impact your cash portfolios

LATEST LIQUIDITY COMMENTARY

Hong Kong Budget 2011/22 - Is the glass half full or half empty

Hong Kong's 2021-22 budget was announced recently. Although there were a few specific implications for short-term interest rates, the budget and the government’s economic plans will have significant longer term implications for HKD cash investors.

RBA Divergent Difficulties

Cash investing remains extremely challenging with institutional investors trapped between an extremely dovish Reserve Bank of Australia (RBA) and markets pricing in inflation and steepening yield curves.

Chinese taper tantrum

The surprise withdrawal of liquidity by the People’s Bank of China in the last week of January triggered a spike in short-term interest rates. Aidan Shevlin, International Head of Liquidity Fund Management, shared his perspectives on China’s monetary policy.

China’s onshore corporate bond market – understanding recent market volatility

China’s bond market has seen an unusual wave of defaults over the past month – triggering a jump in credit spreads and raising investor concerns. Find out the implications to cash investments and why independent credit research remains important.

RBA's further rate cuts - when low is not low enough

The RBA cut base rates and announced the introduction a traditional quantitative easing program “to support job creation and the recovery of the Australian economy from the pandemic”. This was by far the most wide-ranging monetary policy actions by the RBA – with significant implications for the AUD interest rates and investors.

HIBOR – History does not necessarily repeat itself

Escalating political and trade tensions, strong international demand for HKD and increasing connection with China, have weakened the Linked Exchange Rate System (LERS) – with significant implications for HKD cash investors.

Reserve Bank of Australia: Able but not willing

The recent Melbourne lockdown and uneven global recovery have increased market speculation that the RBA will intervene further to support the recovery – with significant implications for the AUD and short-term interest rates.

Interbank Offered Rate (IBOR) Transition: The impact on Asia-Pacific Markets

Majority of Asia-Pacific markets administer and maintain their own IBORs, and are responding to IBOR transition differently.

Market & Portfolio Commentary

Read the latest review of Global Liquidity market and portfolio commentary across the Americas, Asia Pacific, as well as Europe and UK.

China’s interest rate pivot

The combination of a central bank policy pivot, better economic data and market technical factors contrived to end China’s bond bull market – but is the upward momentum sustainable, and what are the implications for investors?

Understanding zero interest rates

We examine how ZIRP works, its impacts, likely timeframe, whether we expect rates to go negative (spoiler: we don’t) and options available to liquidity investors.

Navigating through liquidity events and market volatility

Our investment team navigated through the recent market volatility and, with the help of our clients, weathered through the market storm.

A letter from our CEO John Donohue

Hear how Global Liquidity stayed steadfast in our commitment to clients over the past two months.

A look into Libor reform and current elevated spreads

Libor spreads are elevated, indicating cheapness in the funding markets, but we expect them to normalize in the near to medium term.

The Hong Kong Monetary Authority has stepped up

Learn from Global Liquidity Portfolio Manager, Aidan Shevlin, about latest monetary policies in Hong Kong and how that impacts HKD interest rates and investors.

Singapore Dollar – no longer defying gravity: Implications for cash investors

The Covid-19 outbreak has accentuated the negative implications for international trade, as well as domestic productivity and tourism in Singapore.

Implications of COVID-19 outbreak for short term interest rates

The recent coronavirus (2019-nCoV) outbreak in China has increased investors’ trepidation and financial market uncertainty.

Defining cash for Australian investors

After a prolonged record low, forwards market now see a 50/50 chance of a cut in the overnight cash rate during 2019. However, a weaker housing market and softer consumer demand lower the probability of a RBA’s rate hike.