3 Month Libor | InvestmentWatch

More Fun Facts With Crisis Period LI(E)BOR

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.

The [...]

A new nightmare on Wall Street? U.S. banks face criminal probe into global interest rate-fixing scheme as Barclays blows the whistle on America’s financial giants

Some of America’s top banks are set to be dragged into a major criminal investigation of a global interest rate-fixing scandal about to engulf some of Wall Street’s biggest institutions.

The worldwide probe centres on claims traders at Barclays colluded with rival banks to keep interest rates at levels to their benefit.

Barclays agreed to pay a whopping $453million in fines to the U.S. Justice Department and the UK’s Financial Services Authority.

But it [...]

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 [5] . 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 .

Market size

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 [5] . 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 .[6]

[edit]Futures contracts

The Eurodollar futures contract refers to [...]

As Negative Gold Lease Rates Collapse, The Gold Sell Off Is Likely Coming To An End

by ZH

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) [...]

How Bernanke’s blunt policy tool of unlimited liquidity is leading to an inflation-driven bubble in Asia (and all Emerging Markets)?

by zh

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 [...]

InvestmentWatch

More Fun Facts With Crisis Period LI(E)BOR

A new nightmare on Wall Street? U.S. banks face criminal probe into global interest rate-fixing scheme as Barclays blows the whistle on America’s financial giants

As Negative Gold Lease Rates Collapse, The Gold Sell Off Is Likely Coming To An End

How Bernanke’s blunt policy tool of unlimited liquidity is leading to an inflation-driven bubble in Asia (and all Emerging Markets)?

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