The CrossBorder Capital Blog

Why Are Equity Investors So Upbeat?   We think of investment markets as largely driven by two moving parts: inflows of liquidity and the portfolio exposure of investors to risk assets. The first leg down in a bear squeeze often comes from falling liquidity: the second leg down comes from greater risk aversion. Using US data, we show that this comprises both a lower demand for equity risk and the greater supply of government bonds.       See our latest published research, Global View Why Are Equity Investors So Upbeat? - June 2022     IMPORTANT – Our email addresses are changing – emails from sender@liquidity.com will become sender@crossbordercapital.com from the 1st of July 2022. After this date emails to ANY email account ending in liquidity.com will NOT work. Please update your records before the 1st of July 2022. You may also receive a direct communication from your contact to this effect. Please feel free to con...

“Whatever It Takes” …and More: Euro Set To Fall Below Parity   ‘Muddling through’ is the moniker of the Euro-system. In its present unstable form, it faces permanent crises. The Euro’s underlying structural flaws are now again being exposed by the latest global monetary tensions. Since a political fix seems unlikely, the only practical path for policy-makers is to ‘do a Japan’ and crash the Euro.       See our latest published research, Global View “Whatever It Takes” …and More: Euro Set To Fall Below Parity - June 2022     IMPORTANT – Our email addresses are changing – emails from sender@liquidity.com will become sender@crossbordercapital.com from the 1st of July 2022. After this date emails to ANY email account ending in liquidity.com will NOT work. Please update your records before the 1st of July 2022. You may also receive a direct communication f...

Global Liquidity Latest: "Liquidity Is Terrible"   ·            US QT 'officially' starts this month, June 2022, but the 'effective' balance sheet has already dropped by a whopping US$1 trillion since December 2021 ·            China is facing major downward pressure on her currency, sufficient to cause the PBoC to tighten domestic liquidity policies by an extra US$95 billion     See our latest published research, Global Liquidity Latest – June 2022   IMPORTANT – Our email addresses are changing – emails from sender@liquidity.com will become sender@crossbordercapital.com from the 1st of July 2022. After this date emails to ANY email account ending in liquidity.com will NOT work. Please update your records before the 1st of July 2022. You may also receive a direct communication from your contact to this effect. Please feel free to co...

China At A Critical Turning Point: Could The Yuan Devalue?   For more than five years, until March of this year, Asian currency volatility has been unusually low. We previously suggested that a de facto ‘Asian Euro’ had formed as a pathway that could allow the Chinese Yuan to challenge the US dollar in cross-border markets. Since the Ukraine invasion, at least, the US dollar has been weaponized. A stronger US dollar has heaped pressure on the Yuan, forcing China to tighten policy at a time when her economy is reeling from C-19 lockdowns. This could end badly with a Chinese recession and/or Yuan devaluation.     See our latest published research, Global View – China At A Critical Turning Point: Could The Yuan Devalue? - June 2022     IMPORTANT – Our email addresses are changing – emails from sender@liquidity.com will become sender@crossbordercapital.com from the 1st of July 2022. After this date emails to...