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WHY IS LIQUIDITY IMPORTANT?

Understanding Liquidity is the key to understanding risk.

Understanding Liquidity is the key to understanding risk. Global Liquidity Index (GLI™) series compiled by CrossBorder Capital are widely-used, key alternative indicators which measure financial and economic conditions across some 80 countries Worldwide.

Established in 1986, GLI™ provide a consistent and dependable measure of financial conditions market-by-market.


They precede general business and market cycles, and highlight the contributions from different liquidity providers. By collecting more than 30 data series reported by Central Banks, National Treasuries and private sector institutions across some 80 countries around the world every month, the GLI™ represent the most comprehensive survey of liquidity and credit conditions available to professional investors and advisors.


GLI™ predict movements in international fixed income, equity, credit, currency, futures and options markets. They typically lead business cycles by around 12-15 months and financial asset prices by 3-6 months. Economists, analysts, strategists and portfolio managers in banks, asset management firms, hedge funds and corporate treasury departments all need to watch these data.


Data are published in a timely fashion, typically within 10 days of each month-end and give a very early indication of business and credit conditions at that point in time. GLI™ headline data are designed to provide snapshots of financial and credit conditions, and are lead indicators of future economic activity. Data are comprehensive, covering liquidity conditions across all 80 key economies in the developed, emerging and frontier market universe.


The monthly GLI™ data have two levels: (1) the headline global and national GLI™ release is designed to provide an overview of financial liquidity conditions at each month end; (2) sub-component data detail the key Central Bank, private sector and foreign flow building blocks.


The GLI™ indices are homogeneous in both content and methodology. They are based on reported data or facts, and not on forecasts or opinions. They are expressed both as normalised data in local currency terms and in US dollar value terms, and thus offer unique cross-market comparisons. Our database typically starts for most economies in 1974.


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