Global Liquidity Trends and Equity RiskPremiums

Key Takeaways

• Liquidity improvements tend to compress risk premiums before earnings revisions appear in consensus data.
• US and Asia ex-Japan currently show different valuation sensitivities to real yield changes.
• Regional funding stress indicators remain benign but require close monitoring in smaller financial systems.
• Quality growth and cash-generative cyclicals remain the preferred blend in current conditions.