The fallout from the credit crunch has highlighted the importance of liquidity to the global economy and investors alike.

And that value has been recognised by a number of banks and financial institutions across Bermuda, who have, in turn, set up their own liquidity investment portofolios.

Leading the way is the Bank of Bermuda, with chief investment officer of Liquidity Americas, Faith Outerbridge, spearheading its liquidity business within the North American region.

She is primarily focused on the bank's Bermuda and US operations and the management of its US dollars, bringing on board the company's Canadian office in Vancouver which manages some of its liquidity products.

Bermudian Ms. Outerbridge, who has been in the role for the past two years, was taken on by parent company HSBC's global head of liquidity, Peter Knight, to work on the growth of the liquidity assets.

"Subsequent to Peter's appointment, he looked at the region and how to create the proper oversight and management of the region, and that is when my role was created," she said.

During her time with the company, she was instrumental in almost tripling its assets under management for the region (including Bermuda and the US) from approximately $25 billion two years ago to $60 billion.

"That was the most significant thing I have seen," Ms. Outerbridge said.

"The other key initiative is the management of the assets within the region as a team with portfolio managers being introduced in the Bermuda and US offices."

Ms. Outerbridge, who attained a degree and MBA before joining Butterfield Bank to assist in the management of its liquidity fund, linked up with the Bank of Bermuda about 11 years ago to help it bring its own liquidity fund in house.

When she started the job as portfolio manager there was $500 million in assets in the bank's local fund, which has now grown to a staggering $10 billion.

"I started managing the dollar assets and added the Euro and sterling assets and additional portfolio managers to the bank," Ms. Outerbridge said.

"The bank was bought by the HSBC four years ago and since then the Bermuda office has been given the management of the primary global off-shore liquidity fund which has $30 billion in assets under management."

And she claims the liquidity side of the business has stuck to the principles which have served the bank so well in the past of preservation of capital, liquidity and yield, even during the more recent turbulent times with the markets.

"The current investment environment is somewhat difficult given the credit crisis that has occured," Ms. Outerbridge said.

"But we have been managing by keeping funds as conservative as we can to meet client needs.

"We have stuck to our three principles and that is critical to liquidity investments in general."

Ms. Outerbridge pointed out the key role which liquidity plays in the overall HSBC business strategy, with a big focus on its Bermuda and US divisions.

"It is very much the case that liquidity is considered a core business for HSBC and we are keen to keep the focus on the growth of that business," she said.

"The focus is on Bermuda and the US and now Canada potentially and it could add other regions later on."

Bermuda itself accounts for $30 billion to $34 billion of the region's total of more than $60 billion assets, not to mention the importance of liquidity to the Island's booming re/insurance industry, according to Ms. Outerbridge.

"We are the third largest offshore fund in US dollars," she said.

"Meanwhile, the impact of liquidity in terms of the insurance and reinsurance sector here means that it is a core product that all companies use in the management of their balance sheets."