ENDOGENOUS LIQUIDITY AT A NEW ALL-TIME HIGH
[Latest Global Dollar Liquidity Measure: +13.84% annual growth rate; latest Endogenous Liquidity Index: +13.17%]

Our expermiental, untested, preliminary Endogenous Liquidity Index is reaching new highs. The index is designed to capture the impact of changes in the supply of laonable resources in the credit market resulting from financial innovation, the "Great Moderation" of the business cycle, and the carry trade. Check out the Credit Derivatives & Liquidity section of the blog for lots of info (*).

(*) Latest links: PIMCO's Robert Mead on "Demystifying the Structured Credit Jargon and Identifying the Opportunities", and the Atlanta Fed conference on "Credit Derivatives: Where's the Risk?"