Tag Archives: liquidity conditions

Stricter liquidity and leverage controls may be coming

If you are wondering what’s behind the sudden largesse of the European Central Bank (ECB) when it comes to purchases of bonds, you may find a recent speech by an ECB official at a conference about financial stability enlightening.

While regulators focused on making banks safer following the 2007-2009 financial crisis, the non-bank financial sector has been allowed to continue without the same stringent requirements for liquidity and leverage. This gap came into sharp focus during the crisis caused by the Covid-19 pandemic.

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Top 10 risks for markets according to HSBC analysts

Risks are on the rise in stock markets. The almost automatic risk-on, risk-off trade scenarios are no longer that reliable now that the Federal Reserve has stopped printing money.

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Liquidity conditions worsen

Liquidity conditions are worsening, which means recent volatility in markets is likely to continue and even get worse, a monthly liquidity gauge compiled by investment advisory firm Cross Border Capital shows.

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