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

The PBOC's reluctant policy pivot - another 50bps Reserve Requirement Ratio cut

On December 7, the PBoC announced an unexpected 50bps Reserve Requirement Ratio (RRR) cut. The broad based cut will release significant liquidity into the financial system, while the resultant confirmation that policymakers are focused on stabilizing growth has boosted investor sentiment. CNY cash investors should pay attention to the PBoC’s rapid pivot from neutral to dovish monetary policy and the implications.

Inflation in Asia Pacific - A different phenomenon

Rising inflation concerns are amplifying developed market rate hike expectations; in contrast APAC central banks have benefitted from more muted CPI. The rationale for this difference has important implications for investors.

The Reserve Bank of Australia’s Crisis of Confidence

During October, the yield on the RBA’s yield curve control (YCC) target reference bond spiraled upwards and closed at 0.775%, well beyond the central bank’s 0.10% target. This was an unexpected reversal for a bond which was historically very stable with minimal central bank interventions, since the RBA first introduced the YCC program in March 2020.

MAS policy decision - a hawkish normalization

At its semi-annual monetary policy meeting, the Monetary Authority of Singapore surprised the market by raising slightly the slope of the S$NEER policy band, from zero percent previously.

RBA Tentative Tapering

The RBA announced its first tentative step towards tapering and eventual policy normalization.

PBOC latest deposit price reform – limited implications for cash investors

In June 2021, the People’s Bank of China (PBoC) announced changes to commercial banks’ mechanism for setting the time deposit ceiling from a multiplier method to a basis points method.

PBoC RRR Cut - A dovish policy signal

On 9 July 2021, the PBoC announced a 50bps RRR cut that will reduce bank funding costs and unleash a substantial quantity of liquidity support. The size of the rate cut surprised the market and confirmed the authority’s dovish pivot.

Monetary Authority of Singapore – Cautious optimism as recovery continues

At their latest semi-annual policy meeting, the MAS' comments was modestly upbeat and the central bank revised up their headline inflation target - both of which could have implications for SGD cash investments.

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.

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.

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The most effective strategy incorporates a clear investment policy, well-defined goals and parameters for liquidity, quality and return.

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Cash investment policy statement

A cash investment policy statement lets an organization define its short-term investment objectives and the strategies for achieving them.

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Managing your Renminbi cash needs an expert guide

We've been offering renminbi solutions since 2005, combining global expertise with local knowledge to help you navigate this complex market.

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Case studies

Read about companies with specific cash management challenges and the solutions when they worked with J.P. Morgan Asset Management.

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John T. Donohue

Head of Global Liquidity

24 years with J.P. Morgan

33 years in the Industry

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Aidan Shevlin

Head of International Liquidity Fund Management

25 years with J.P. Morgan

25 years in the Industry

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Lan Wu

Investment Specialist and Fund Manager

10 years with J.P. Morgan

13 years in the Industry

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Andy Chang

Credit analyst

7 years with J.P. Morgan

12 years in the Industry

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Dave Martucci

Portfolio Manager, Global Head of Managed Reserves

21 years with J.P. Morgan

21 years in the Industry

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Kheng Leong Cheah

Head of Global Liquidity Sales, Asia Pacific

12 years with J.P. Morgan

24 years in the Industry

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Paula Stibbe

Global Head of Liquidity Clients

10 years with J.P. Morgan

29 years in the Industry

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Paul Przybylski

Global Head of Product Strategy and Client Service

13 years with J.P. Morgan

20 years in the Industry

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Ted Ufferfilge

Global Head of Client Portfolio Management

20 years with J.P. Morgan

29 years in the Industry

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Claude Lam

Trader and Junior Portfolio Manager, Asia Pacific Liquidity

5 years with J.P. Morgan

5 years in the Industry

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John T. Donohue

Head of Global Liquidity

Aidan Shevlin

Head of International Liquidity Fund Management

Lan Wu

Investment Specialist and Fund Manager

Andy Chang

Credit analyst

Dave Martucci

Portfolio Manager, Global Head of Managed Reserves

Kheng Leong Cheah

Head of Global Liquidity Sales, Asia Pacific

Paula Stibbe

Global Head of Liquidity Clients

Paul Przybylski

Global Head of Product Strategy and Client Service

Ted Ufferfilge

Global Head of Client Portfolio Management

Claude Lam

Trader and Junior Portfolio Manager, Asia Pacific Liquidity