by Michael J. Howell12. January 2015 19:21Global Liquidity is starting 2015 on a downbeat. Our GLI index of liquidity conditions stands at 41.8 or down from its 45.9 end-November 2014 reading. Lower Global Liquidity warns of future financial and economic risk. Current levels of liquidity do not signal recession but they do point to economic slowdown over coming months and greater market volatility. Consistent with this picture Treasury yield curves are flattening and corporate credit spreads are widening. Our models are flagging a 'Risk Off' regime.