State Street Corp. today announced it has launched a package of portfolio management tools enabling money managers to measure liquidity, contagion risk and portfolio flows across 46 countries. The analysis is based on measuring investment flows within the $5.3 trillion in assets the bank holds in custody and gives money managers a daily view of whether investors are generally long or short in various markets relative to different indexes. Investors responses to macroeconomic data and events tend to depend more on whether they are long or short in a particular market rather than whether the data are worse or better than expected, said Avinash Persaud, head of global research for State Streets financial markets group. This analysis of current and historical portfolio flows also enables money managers to measure market liquidity and contagion risk, both of which can substantially affect overall risk within a portfolio. The analysis covers equities, fixed income, currencies, forwards and options, but not commodities.