Via Peter Tchir of TF Market Advisors,
Some “Crisis” Period Libor
I figured it was worth looking at some more LIBOR data. I picked on 7 banks: Barclays, Citi, UBS, JPM, RBS, DB and BOTM, largely to get a cross section from different countries.
The first thing I did was look at the range of submissions for 3 month LIBOR. I took the difference between the higher and lowest submission from these 7 banks.
By Dec. 1985 the Eurocurrency market was estimated by Morgan Guarantee bank to have a net size of 1,668B, of which 75% are likely eurodollars  . since it is not responsible to any government agency its growth is hard to estimate. The Eurodollar market is by a wide margin the largest source of global finance. In 1997, nearly 90% of all international loans were made this way .
The Eurodollar futures contract refers to [...]
One of the more curious dynamics for those who follow the gold market closely, has been the relentless grind lower (or higher if looked at on an absolute value basis), of gold lease rates (defined as Libor – GOFO), which recently hit all time record lows (i.e., negative), for the 1 month version, although the more traditional 3 Month (as it is based on the benchmark 3M USD Libor) [...]
Macro Man Simon Black provides a first person perspective of how this bubble is developing, and how it will soon pop. In some ways this is empirical evidence of what Knight Research said previously: namely that the days of an EM push-pull mechanism are coming to an end.
A must read note for all those who base their investment decisions based on theoretical musings and thought experiment speculation.
From: Sovereign [...]