{"id":2670,"date":"2008-10-17T09:19:24","date_gmt":"2008-10-17T09:19:24","guid":{"rendered":"https:\/\/mmm.9dotdigital.ca\/?p=2670"},"modified":"2025-03-27T15:48:44","modified_gmt":"2025-03-27T15:48:44","slug":"uk-institutional-liquidity-historically-high","status":"publish","type":"post","link":"https:\/\/mmm.9dotdigital.ca\/?p=2670","title":{"rendered":"UK institutional liquidity historically high"},"content":{"rendered":"<p>The liquidity ratio of UK insurance companies and pension funds \u2013 their holdings of money and short-term paper expressed as a percentage of their total financial assets \u2013 is at its highest level since 1975, implying institutions have ample firepower to deploy in markets when confidence returns.<\/p>\n<p>Liquidity stood at \u00a3182 billion at the end of the second quarter, \u00a331 billion up on a year before and equivalent to 8.4% of assets, the highest since the bottom of the equity bear market in 1990 \u2013 see chart. With the subsequent fall in asset values, the ratio is now likely to be about 9.5%, above the 1990 peak and a level exceeded only in 1974-75, after a plunge in share prices of more than 70%.<\/p>\n<p>The latest Merrill Lynch global fund manager survey confirms high sideline liquidity, with a net 49% of respondents overweight cash \u2013 the highest since this question began to be asked in 2001.<\/p>\n<p><span class=\"full-image-block\"><span><img decoding=\"async\"  src=\"\/storage\/UK-institutional-liquidity-ratios.jpg?__SQUARESPACE_CACHEVERSION=1224237721522\"><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The liquidity ratio of UK insurance companies and pension funds \u2013 their holdings of money and short-term paper expressed as a percentage of their total financial assets \u2013 is at its highest level since 1975, implying institutions have ample firepower to deploy in markets when confidence returns. Liquidity stood at \u00a3182 billion at the end [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2670","post","type-post","status-publish","format-standard","hentry","category-money-moves-markets"],"_links":{"self":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2670"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2670\/revisions"}],"predecessor-version":[{"id":4979,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/2670\/revisions\/4979"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}