Risk Administration & Analysis

We ship energetic funding strategies across private and non-private markets and custom options to institutional and particular person investors. We find that liquidity creation has elevated considerably since 1987, culminating in $16.1 trillion of liquidity created by banks in 2014, of which $4.6 trillion was off their stability sheet. Figure 1 exhibits the evolution of financial institution liquidity creation for the US between 1987 and 2014. Total liquidity created by the US banking sector has clearly increased over time, although not monotonically. It is essential to note that each on- and off-balance sheet liquidity is relevant for this dialogue.

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