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Dollar Libor Jumps To Fresh 10 Year High, Adding To Funding Headwinds
Dollar Libor Jumps To Fresh 10 Year High, Adding To Funding Headwinds It may be the bete noir of the credit market, but despite the gradual phase out of the infamous manipulated benchmark, Libor remains the reference rate for trillions in floating rate debt instruments, and in a further indication that monetary conditions are tightening […]
You’re Paying Attention To The Wrong Interest Rate
You’re Paying Attention To The Wrong Interest Rate Lamensdorf Market Timing Report – Special Edition This special report by LMTR.com will highlight a few charts. Investors with a lot at stake should pay close attention to these gauges over the coming months. Failure to act on warning signs could be the difference between a comfortable […]
Lie-Bor: Pitchforkers Rejoice
Lie-Bor: Pitchforkers Rejoice There’s a bit of a hullabaloo going on at the moment about LIBOR. And in truth, it is a pretty big deal. Yes, even bigger than whether or not Stormy Daniels got jiggetty with an old guy wearing a wig. And get this… even bigger than Kanye’s man-love for the same guy. What […]
There is Over $7.5 Trillion In Debt That’s Highly Vulnerable To Rising Rates – Here’s What To Expect
There is Over $7.5 Trillion In Debt That’s Highly Vulnerable To Rising Rates – Here’s What To Expect The 10-year interest rate hit the critical level of 3% this morning. And this is the highest level it’s been since 2014 – four years ago. . . A couple months back, I highlighted the correlation of […]
Fox in the Hen House: Why Interest Rates Are Rising
Fox in the Hen House: Why Interest Rates Are Rising On March 31stthe Federal Reserve raised its benchmark interest rate for the sixth time in 3 years and signaled its intention to raise rates twice more in 2018, aiming for a fed funds target of 3.5% by 2020. LIBOR (the London Interbank Offered Rate) has […]
Wolf Richter: The Era Of The Fed “Put” Is Over
Wolf Richter: The Era Of The Fed “Put” Is Over It now wants lower asset prices (just not too fast) To all those investors expecting the Fed to step in to backstop the recent weakness seen in the stock market, Wolf Richter warns: The cavalry isn’t coming. After years of force-feeding too much liquidity into […]
How Many Trillions In Debt Are Linked To Soaring LIBOR?
How Many Trillions In Debt Are Linked To Soaring LIBOR? Over the past month as Libor continued its relentless upward creep and is now higher for 37 consecutive sessions, the longest streak of advances since November 2005, and rising to 2.3118% while blowing out the Libor-OIS spread to a crisis-like 59bps, a cottage industry has […]
“Where Will It Stop?”: Libor Spread Blows Out Beyond Eurocrisis Highs, Central Banks Intervention Awaited
“Where Will It Stop?”: Libor Spread Blows Out Beyond Eurocrisis Highs, Central Banks Intervention Awaited Until two days ago, the critical level for both the Libor-OIS and FRA-OIS spread was the “psychological level” of 50bps. This, however, was breached on Wednesday when as we reported Libor pushed significantly higher without a matching move in swaps. […]
Interbank Market Collapsing
Interbank Market Collapsing QUESTION: Mr. Armstrong; Has interbank lending collapse due to a lack of confidence concerning counter-party risk? Thank you for being a rare source with experience ER ANSWER: Yes that is a correct statement. The failure of Lehman and Bear Sterns was the result of interbank lending when they could not make good on […]
Plunge in Interbank Lending: The Straw that Broke the Fed’s Back
Plunge in Interbank Lending: The Straw that Broke the Fed’s Back Interbank lending took a historic dive. Readers ask “What’s happening?” Let’s investigate. Interbank Lending Long Term The plunge in interbank lending is both sudden and dramatic. What’s going on? Fed Tightening Two Ways The short answer is a straw broke the Fed’s back. A […]
Charting The Epic Collapse Of The World’s Most Systemically Dangerous Bank
Charting The Epic Collapse Of The World’s Most Systemically Dangerous Bank It’s been almost 10 years in the making, but the fate of one of Europe’s most important financial institutions appears to be sealed. After a hard-hitting sequence of scandals, poor decisions, and unfortunate events,Visual Capitalist’s Jeff Desjardins notes that Frankfurt-based Deutsche Bank shares are now down -48% on […]
The Credit Crunch Is Back: Banks Scramble To Collateralize Loans To Record Levels
The Credit Crunch Is Back: Banks Scramble To Collateralize Loans To Record Levels One of the biggest quandaries of this cycle for the US economy has been the amount and growth of commercial bank loans. Virtually non-existent for the first three years of the centrally-planned new normal, something changed in 2012 at which point US […]
