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BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Libor Rises for 12th Straight Day]]>http://www.bloggingstocks.com/2010/05/26/libor-rises-for-12th-straight-day/http://www.bloggingstocks.com/2010/05/26/libor-rises-for-12th-straight-day/http://www.bloggingstocks.com/2010/05/26/libor-rises-for-12th-straight-day/#commentsFiled under: Financial Crisis

In another sign that banks remain hesitant about lending to each other amid the European debt crisis, the three-month Libor, or London interbank offered rate for loans in dollars, rose Wednesday for the 12th straight day, to 0.538% -- its highest level since July 6, 2009, Bloomberg News reported Wednesday.

The Libor, which serves as a sort of 'ATM for banks,' rose to a stratospheric high of 3.65% during the financial crisis' acute stage when Lehman Brothers collapsed in the fall of 2008. The rate also serves as the benchmark for about $360 trillion in financial products globally, encompassing everything from mortgages to student loans.

Continue reading Libor Rises for 12th Straight Day

Libor Rises for 12th Straight Day originally appeared on BloggingStocks on Wed, 26 May 2010 16:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>debt crisisinthenewslendingLiborWed, 26 May 2010 16:30:00 EST<![CDATA[Libor Rises on Greek, Europe Debt Concerns]]>http://www.bloggingstocks.com/2010/05/07/libor-rises-on-greek-europe-debt-concerns/http://www.bloggingstocks.com/2010/05/07/libor-rises-on-greek-europe-debt-concerns/http://www.bloggingstocks.com/2010/05/07/libor-rises-on-greek-europe-debt-concerns/#commentsFiled under: Financial Crisis

One troubling sign (amid a week filled with disconcerting signs) for the markets is the increase in the three-month Libor, or London interbank offered rate, which rose 5.5 basis points to 0.428% on Friday: its highest level since August 17, 2009, Bloomberg News reported.

Experienced investors will recall that the Libor, which serves as a sort of "ATM for banks," rose to a stratospheric high of 3.65% during the financial crisis' acute stage when Lehman Brothers collapsed in the fall of 2008.

Continue reading Libor Rises on Greek, Europe Debt Concerns

Libor Rises on Greek, Europe Debt Concerns originally appeared on BloggingStocks on Fri, 07 May 2010 16:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>debtGreeceinterest rateinterest ratesinthenewsLiborFri, 07 May 2010 16:00:00 EST<![CDATA[Ray of light: More evidence that credit markets are normalizing]]>http://www.bloggingstocks.com/2009/08/13/ray-of-light-more-evidence-that-credit-markets-are-normalizing/http://www.bloggingstocks.com/2009/08/13/ray-of-light-more-evidence-that-credit-markets-are-normalizing/http://www.bloggingstocks.com/2009/08/13/ray-of-light-more-evidence-that-credit-markets-are-normalizing/#commentsFiled under: International Markets, Good news, Financial Crisis

It's been a week of mostly positive data points for U.S. investors. Here's another: the Libor-OIS spread has narrowed to a level former U.S. Federal Reserve Chairman Alan Greenspan said he regarded as "normal."

The Libor-OIS spread, which measures the reluctance among banks to lend, fell 1 basis point Thursday to 25 basis points -- its lowest level since January 24, 2008, Bloomberg News reported. The spread had surged to an incredible 364 basis point in October 2008, during the global financial crisis' acute stage.

Continue reading Ray of light: More evidence that credit markets are normalizing

Ray of light: More evidence that credit markets are normalizing originally appeared on BloggingStocks on Thu, 13 Aug 2009 18:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>creditlendingLiborsmall business creditSmallBusinessCreditTED spreadThu, 13 Aug 2009 18:30:00 EST<![CDATA[Under the radar: Libor's dip below 0.50% indicates further credit thaw]]>http://www.bloggingstocks.com/2009/07/28/under-the-radar-libors-dip-below-0-50-indicates-further-credi/http://www.bloggingstocks.com/2009/07/28/under-the-radar-libors-dip-below-0-50-indicates-further-credi/http://www.bloggingstocks.com/2009/07/28/under-the-radar-libors-dip-below-0-50-indicates-further-credi/#commentsFiled under: International Markets, Financial Crisis

Some trends are obvious enough and visible to all investors. Others are more subtle, but are just as potent, and these often slip "under the radar."

Case in point: The 3-month Libor, or London interbank offered rate, dipped below 0.50% to 0.496% for the first time since the financial crisis began last fall, providing additional evidence that central banks' efforts to loosen credit markets are working, Bloomberg News reported Monday.

Continue reading Under the radar: Libor's dip below 0.50% indicates further credit thaw

Under the radar: Libor's dip below 0.50% indicates further credit thaw originally appeared on BloggingStocks on Tue, 28 Jul 2009 09:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>LiborTue, 28 Jul 2009 09:00:00 EST<![CDATA[Credit markets may be approaching a crossroads economists say ]]>http://www.bloggingstocks.com/2009/01/22/credit-markets-may-be-approaching-a-crossroads-economists-say/http://www.bloggingstocks.com/2009/01/22/credit-markets-may-be-approaching-a-crossroads-economists-say/http://www.bloggingstocks.com/2009/01/22/credit-markets-may-be-approaching-a-crossroads-economists-say/#commentsFiled under: International Markets, Forecasts, Federal Reserve, Financial Crisis

Is the Libor at a crossroads? Will monetary officials in the world's major economies have to do more to further loosen the credit markets?

The answers to the above, in the view of two economists, are: 'yes' and 'yes.'

Short-term interests have fallen considerably in the past four months, with the London rate for three-month loans in dollars (LIBOR) declining to 1.16% Thursday from 4.82% earlier last fall, primarily on the strength of more than $8.4 trillion in liquidity-oriented interventions by the U.S. Federal Reserve and other major central banks.

Still, credit conditions remain constrained, with credit availability no where near where it should be for healthy commercial activity, so says economist Richard Felson. "Credit conditions have improved since the fall crisis that nearly froze the global credit market, but you'd still categorize the credit markets as stressed, with a lack of bank-to-bank confidence. Credit markets are still not liquid enough to support an economic recovery," Felson said. "Central banks will have to do more to normalize credit conditions, primarily through purchases of assets."

The LIBOR is particularly important because it determines rates for $360 trillion of financial products worldwide, from home loans to derivatives.

Continue reading Credit markets may be approaching a crossroads economists say

Credit markets may be approaching a crossroads economists say originally appeared on BloggingStocks on Thu, 22 Jan 2009 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>inthenewsliborThu, 22 Jan 2009 12:30:00 EST<![CDATA[10 craziest days on Wall Street in 2008: #2 House rejects bailout plan]]>http://www.bloggingstocks.com/2009/01/04/10-craziest-days-on-wall-street-in-2008-2-house-rejects-bailou/http://www.bloggingstocks.com/2009/01/04/10-craziest-days-on-wall-street-in-2008-2-house-rejects-bailou/http://www.bloggingstocks.com/2009/01/04/10-craziest-days-on-wall-street-in-2008-2-house-rejects-bailou/#commentsFiled under: Major Movement, Politics

Sept. 29: Dow 10,365 (down 777 points); trading range, 872 points

The markets collapsed after the U.S. House of Representatives failed to pass the $700 billion Emergency Economic Stabilization Act.

Considering the tight credit markets, most were expecting the measure to sail through Capitol Hill, but the bill's failure exacerbated fears that the economy would continue to suffer while the politicians tried to reach a solution.

Naturally, both political parties pointed the finger at the other to place blame for the measure's failure.

Continued tightness in the credit markets were reflected in the TED spread, the difference between what the banks charge each other for three-month loans (three-month LIBOR) and what the U.S. government pays for them (three-month T-bills). The spread was at its highest level since 1984, and indicated that banks were unwilling to lend to each other.

The selling on the Street was broad based, as the Dow, Nasdaq and S&P 500 fell 7%, 9.1% and 8.8%, respectively, settling at the session's lows.

The Nasdaq and S&P 500's declines were the largest since Black Monday in 1987, while the Dow posted its worst day since the 9/11 attacks.

Greg Tucker is the executive editor of OptionsZone.com.

10 craziest days on Wall Street in 2008: #2 House rejects bailout plan originally appeared on BloggingStocks on Sun, 04 Jan 2009 16:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailoutemergency economic stabilization actEmergencyEconomicStabilizationActliborted spreadTedSpreadSun, 04 Jan 2009 16:00:00 EST<![CDATA[Stabilized credit markets could hit more bumps in road in 2009, economist says]]>http://www.bloggingstocks.com/2008/12/19/stabilized-credit-markets-could-hit-more-bumps-in-road-in-2009/http://www.bloggingstocks.com/2008/12/19/stabilized-credit-markets-could-hit-more-bumps-in-road-in-2009/http://www.bloggingstocks.com/2008/12/19/stabilized-credit-markets-could-hit-more-bumps-in-road-in-2009/#commentsFiled under: International Markets, Forecasts, Recession, Financial Crisis

Global credit markets have recovered and stabilized following a brush with a global financial meltdown in September, but those markets have not normalized and a tough stretch of road remains ahead, so says an economist.

"We are on 'a great, long, slow journey' to use a Chinese saying," economist David H. Wang told BloggingStocks. "We have to be prepared for more bumps in the road ahead in 2009. We must be both proactive and also take corrective action in the credit markets."

Short-term interests have fallen considerably in the past three months, with the London rate for three-month loans in dollars (LIBOR) declining Friday to 1.50% from 4.82% earlier this fall, Bloomberg News reported, primarily on the strength of $8.4 trillion in liquidity-oriented interventions by the U.S. Federal Reserve and the other, major central banks.

The LIBOR is particularly important because it determines rates for $360 trillion of financial products worldwide, from home loans to derivatives.

Central banks: on the watch for credit stress signs

What could represent one of those 'bumps,' i.e. a re-igniting of short-term rates, in Wang's view? Another wave of home mortgage foreclosures, which would lead to another batch of toxic-bonds, write-offs, and financial institution stress, he said. The aforementioned "underscores the urgency of the Obama Administration and Congress passing a major home mortgage refinance plan for preventable foreclosures," Wang said. "If we stem the rise in mortgage foreclosures, we will make progress on the road leading to economic recovery."

Continue reading Stabilized credit markets could hit more bumps in road in 2009, economist says

Stabilized credit markets could hit more bumps in road in 2009, economist says originally appeared on BloggingStocks on Fri, 19 Dec 2008 15:51:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bond marketcredit marketsinterest ratesinthenewsLIBORmonetary policyFri, 19 Dec 2008 15:51:00 EST<![CDATA[Short-term interest rates record mixed Monday]]>http://www.bloggingstocks.com/2008/11/10/short-term-interest-rates-record-mixed-monday/http://www.bloggingstocks.com/2008/11/10/short-term-interest-rates-record-mixed-monday/http://www.bloggingstocks.com/2008/11/10/short-term-interest-rates-record-mixed-monday/#commentsFiled under: International Markets, Financial Crisis

Policy makers and bank officials are hoping it's just a Monday 'pause that refreshes.'

Short-term interests notched a mixed day on Monday, as the London rate for three-month loans in dollars declined for the 24th consecutive day, dropping another 6 basis points to 2.24%.

However, the three-month rate is still 124 basis points above the U.S. Federal Reserve's target interest rate. Further, the five-year average for the three month rate is 22 basis points. In addition, the overnight rate, or LIBOR, rose 2 basis points to 0.35%.

Also, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, fell another 6 basis points to 170 basis points, which is down from 387 basis points on October 10.

However, the TED spread was 87 basis points before the Lehman Brothers bankruptcy, and the current rate is still 159 basis points above the 11-basis-point, five-year average.

Continue reading Short-term interest rates record mixed Monday

Short-term interest rates record mixed Monday originally appeared on BloggingStocks on Mon, 10 Nov 2008 11:11:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorBankingSectorbanksbond marketcredit marketsinterest ratesinthenewsLIBORmonetary policyMon, 10 Nov 2008 11:11:00 EST<![CDATA[Short-term interest rates notch another downward day, week of progress]]>http://www.bloggingstocks.com/2008/11/07/short-term-interest-rates-notch-another-downward-day-week-of-pr/http://www.bloggingstocks.com/2008/11/07/short-term-interest-rates-notch-another-downward-day-week-of-pr/http://www.bloggingstocks.com/2008/11/07/short-term-interest-rates-notch-another-downward-day-week-of-pr/#commentsFiled under: International Markets, Financial Crisis

More progress on the credit market front.

The London rate for three-month loans in dollars declined for the 20th consecutive day, dropping another 10 basis points to 2.29%. However, the three-month rate is still 129 basis points above the U.S. Federal Reserve's target interest rate. Further, the five-year average for the three month rate is 22 basis points.

Also, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, fell another 9 basis points to 174 basis points, which is down from 383 basis points on October 10.

However, the TED spread was 87 basis points before the Lehman Brothers bankruptcy, and the current rate is still 163 basis points above the 11-basis-point, five-year average.

Economist Peter Dawson said credit markets have notched another good week. "It was another week of progress, with rates consistently heading lower, but more work remains," Dawson said. "Bank confidence is increasing, but it's not where it should be. More must be done by governments to remove toxic assets from banks and from the financial system to encourage more banks to lend."

Continue reading Short-term interest rates notch another downward day, week of progress

Short-term interest rates notch another downward day, week of progress originally appeared on BloggingStocks on Fri, 07 Nov 2008 10:17:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>banking systembanksbond marketcredit marketseconomyinterest ratesinthenewsLIBORFri, 07 Nov 2008 10:17:00 EST<![CDATA[Short-term interest rates fall again, but need to go further]]>http://www.bloggingstocks.com/2008/11/05/short-term-interest-rates-notch-another-downward-day/http://www.bloggingstocks.com/2008/11/05/short-term-interest-rates-notch-another-downward-day/http://www.bloggingstocks.com/2008/11/05/short-term-interest-rates-notch-another-downward-day/#commentsFiled under: International Markets, Federal Reserve, Financial Crisis

More progress on the credit market front. The initiative by major central banks to increase the supply of dollars globally to free up credit continued to move rates in the right direction early Wednesday -- down -- as rates fell to their lowest level since the failure of Lehman Brothers on September 15.

The London rate for three-month loans in dollars declined for the 18th consecutive day, dropping another 20 basis points to 2.51%. However, the three-month rate is still 151 basis point above the U.S. Federal Reserve's target interest rate. Further, the five-year average for the three month rate is 22 basis points.

Also, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, fell another 19 basis points to 192 basis points, which is down from 383 basis points on October 10.

Still, the TED spread was 87 basis points before the Lehman Brothers bankruptcy. Economist Peter Dawson said the difference between current credit market rates and the historical averages indicate both progress and how much work remains.

Continue reading Short-term interest rates fall again, but need to go further

Short-term interest rates fall again, but need to go further originally appeared on BloggingStocks on Wed, 05 Nov 2008 12:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>110508banking sectorbanksbond marketcredit marketsinterest ratesinthenewsLIBORWed, 05 Nov 2008 12:30:00 EST<![CDATA[Short-term interest rates continue to inch lower ]]>http://www.bloggingstocks.com/2008/11/04/short-term-interest-rates-continue-to-inch-lower/http://www.bloggingstocks.com/2008/11/04/short-term-interest-rates-continue-to-inch-lower/http://www.bloggingstocks.com/2008/11/04/short-term-interest-rates-continue-to-inch-lower/#commentsFiled under: International Markets, Financial Crisis

Another day of progress in the credit markets. The London rate for three-month loans in dollars declined for the 17th consecutive day, dropping another 15 basis points to 2.71%.

Meanwhile, the London interbank overnight rate, or LIBOR, dipped 1 basis point to 0.38%. Also, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, fell 12 basis points to 211 basis points, which is down from 364 basis points on October 10.

Economist Peter Dawson said Tuesday the only thing better than falling gasoline prices is a drop in overnight interest rates. "Again, you have to like this progress. Central bank infusions of dollars continue to loosen credit markets, which is one part in solving this financial crisis," Dawson said. "Also, look for continued downward movement in bank-to-bank rates, if the [U.S. presidential] election goes as expected and Obama wins, on the belief it's a vote of confidence for policies put in place to end the financial crisis."

According to Gallup.com, U.S. Sen. Barack Obama, D-Illinois, led U.S. Sen. John McCain, R-Arizona, 55%-44% in the organization's final tracking poll.

Continue reading Short-term interest rates continue to inch lower

Short-term interest rates continue to inch lower originally appeared on BloggingStocks on Tue, 04 Nov 2008 09:43:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>banking sectorbanksbond marketcredit marketsinterest ratesinthenewsLIBORTue, 04 Nov 2008 09:43:00 EST<![CDATA[Short-term interest rates fall to lowest level since Lehman failure]]>http://www.bloggingstocks.com/2008/11/03/short-term-interest-rates-fall-to-lowest-level-since-lehman-fail/http://www.bloggingstocks.com/2008/11/03/short-term-interest-rates-fall-to-lowest-level-since-lehman-fail/http://www.bloggingstocks.com/2008/11/03/short-term-interest-rates-fall-to-lowest-level-since-lehman-fail/#commentsFiled under: International Markets, Financial Crisis

More progress on the credit market front.

The initiative by major central banks to increase the supply of dollars globally to free-up credit continued to move rates in the right direction early Monday -- down -- as rates fell to their lowest level since the failure of Lehman Brothers on September 15.

The London rate for three-month loans in dollars declined for the 16th consecutive day, dropping another 17 basis points to 2.86%. The three-month rate for the euro, the Euribor, also fell 3 basis points to 4.74%. Rates also fell in Asia.

Meanwhile, the London interbank overnight rate, or LIBOR, decreased 2 basis points to 0.39%. In addition, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, fell to 224 basis points, which is down from 364 basis points on October 10.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Continue reading Short-term interest rates fall to lowest level since Lehman failure

Short-term interest rates fall to lowest level since Lehman failure originally appeared on BloggingStocks on Mon, 03 Nov 2008 09:55:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>banking sectorBankingSectorbanksbond marketBondMarketcredit marketsCreditMarketsinterest ratesInterestRatesinthenewsLIBORMon, 03 Nov 2008 09:55:00 EST<![CDATA[Short-term interest rates fall again Friday, capping week of liquidity improvement ]]>http://www.bloggingstocks.com/2008/10/31/short-term-interest-rates-fall-again-friday-capping-week-of-liq/http://www.bloggingstocks.com/2008/10/31/short-term-interest-rates-fall-again-friday-capping-week-of-liq/http://www.bloggingstocks.com/2008/10/31/short-term-interest-rates-fall-again-friday-capping-week-of-liq/#commentsFiled under: International Markets, Financial Crisis

The global financial crisis will not be resolved in a week, or a month, or even a quarter, economists generally agree. Nevertheless, notch an impressive week of liquidity improvement for the credit markets.

The initiative by major central banks to increase the supply of dollars globally to free-up credit continued to move rates in the right direction Friday -- down -- as private banks were encouraged by U.S. Federal Reserve commercial paper buying.

The London rate for three-month loans in dollars declined for the15th consecutive day, dropping another 16 basis points to 3.03%. Meanwhile, the London interbank overnight rate, or LIBOR, plunged another 41 basis points to 0.33% -- 59 basis points below the Fed's target rate.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Continue reading Short-term interest rates fall again Friday, capping week of liquidity improvement

Short-term interest rates fall again Friday, capping week of liquidity improvement originally appeared on BloggingStocks on Fri, 31 Oct 2008 10:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorbanksbond marketcredit marketsinterest ratesinthenewsLIBORmonetary policyFri, 31 Oct 2008 10:55:00 EST<![CDATA[Short-term interest rates fall again on Fed rate cut, dollar swap lines]]>http://www.bloggingstocks.com/2008/10/30/short-term-interest-rates-fall-again-on-fed-rate-cut-dollar-swa/http://www.bloggingstocks.com/2008/10/30/short-term-interest-rates-fall-again-on-fed-rate-cut-dollar-swa/http://www.bloggingstocks.com/2008/10/30/short-term-interest-rates-fall-again-on-fed-rate-cut-dollar-swa/#commentsFiled under: International Markets, Federal Reserve, Financial Crisis

Short-term interest rates continue their downward trek.

The effort by major central banks to increase the supply of dollars globally to free-up credit continued to move rates in the right direction Thursday -- down -- as private banks were encouraged by the U.S. Federal Reserve's interest rate cut and $120 billion in new swap lines with emerging market central banks.

The London rate for three-month loans in dollars declined for the 14th consecutive day, dropping another 23 basis points to 3.19%. Rates also fell in Asia: the three-month rate for Hong Kong, the HIBOR, dropped 15 basis points to 3.39%.

Meanwhile, the London interbank overnight rate, or LIBOR, plunged another 41 basis points to 0.73% - - its lowest level since January 2001.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Continue reading Short-term interest rates fall again on Fed rate cut, dollar swap lines

Short-term interest rates fall again on Fed rate cut, dollar swap lines originally appeared on BloggingStocks on Thu, 30 Oct 2008 10:33:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorBankingSectorbanksbond marketBondMarketBrazilcredit marketsCreditMarketsemerging marketsFedinterest ratesinthenewsLIBORMexicomonetary policySingaporeSouth Koreaswap linesThu, 30 Oct 2008 10:33:00 EST<![CDATA[Short-term interest rates fall on cash injections, likely Fed rate cut]]>http://www.bloggingstocks.com/2008/10/29/short-term-interest-rates-fall-on-cash-injections-likely-fed-ra/http://www.bloggingstocks.com/2008/10/29/short-term-interest-rates-fall-on-cash-injections-likely-fed-ra/http://www.bloggingstocks.com/2008/10/29/short-term-interest-rates-fall-on-cash-injections-likely-fed-ra/#commentsFiled under: International Markets, Forecasts, Federal Reserve, Financial Crisis

The thaw in short-term interest rates continues.

The effort by major central banks to increase the supply of dollars globally to free-up credit continued to move rates in the right direction Wednesday -- down -- as private banks were encouraged by commercial paper purchases by the U.S. Federal Reserve and a likely interest rate cut later today.

The London rate for three-month loans in dollars declined for the 13th consecutive day, dropping 5 basis points to 3.42%. The three-month rate for the euro, the Euribor, also fell 2 basis points to 4.83%, and the three-month rate for Hong Kong dollars, the Hibor, dropped 30 basis points to 3.54%.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Continue reading Short-term interest rates fall on cash injections, likely Fed rate cut

Short-term interest rates fall on cash injections, likely Fed rate cut originally appeared on BloggingStocks on Wed, 29 Oct 2008 09:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bond marketBondMarketcredit marketsCreditMarketsFedinterest ratesInterestRatesinthenewsLIBORmonetary policyMonetaryPolicyWed, 29 Oct 2008 09:30:00 EST<![CDATA[Short-term interest rates fall on central bank cash injections]]>http://www.bloggingstocks.com/2008/10/28/short-term-interest-rates-fall-on-central-bank-cash-injections/http://www.bloggingstocks.com/2008/10/28/short-term-interest-rates-fall-on-central-bank-cash-injections/http://www.bloggingstocks.com/2008/10/28/short-term-interest-rates-fall-on-central-bank-cash-injections/#commentsFiled under: International Markets, Financial Crisis

Notch another day of modest progress for the credit markets.

Short-term interest rates declined early Tuesday, as several central banks in Europe injected more cash into the financial system. The London rate for three-month loans in dollars fell 4 basis points to 3.47%, its 12th straight daily decline. The three-month rate for the euro, or Euribor, fell 5 basis points to 4.85%. However, interest rates in Asia rose, with the Hong Kong interbank offer rate, or HIBOR, rising 10 basis points to 3.84%

In addition, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, narrowed 14 basis points to 262 basis points Tuesday. The TED spread has now declined 172 points from 434 basis points more than a week ago.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Continue reading Short-term interest rates fall on central bank cash injections

Short-term interest rates fall on central bank cash injections originally appeared on BloggingStocks on Tue, 28 Oct 2008 09:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorbanksbond marketcredit marketsEURIBORHIBORinterest ratesinthenewsLIBORmonetary policyTue, 28 Oct 2008 09:55:00 EST<![CDATA[Short-term interest rates continue bumpy journey]]>http://www.bloggingstocks.com/2008/10/27/short-term-interest-rates-continue-bumpy-journey/http://www.bloggingstocks.com/2008/10/27/short-term-interest-rates-continue-bumpy-journey/http://www.bloggingstocks.com/2008/10/27/short-term-interest-rates-continue-bumpy-journey/#commentsFiled under: International Markets, Forecasts, Financial Crisis

Short-term interest rates continued to reflect bank-to-bank and financial institution uncertainty early Monday, amid local currency declines in emerging markets, as institutional investors bought dollars and the yen in an ongoing flight-to-safety pattern.

The London interbank overnight rate, or LIBOR, fell just 1 basis point to 1.28%. In addition, the London rate for three-month loans in dollars also fell just 2 basis point to 3.51%. The rate for the euro, or EURIBOR, fell about 1 basis point to 4.91%. However, interest rates in Asia rose, with the Hong Kong interbank offer rate, or HIBOR, rising 45 basis points to 3.74%

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Continue reading Short-term interest rates continue bumpy journey

Short-term interest rates continue bumpy journey originally appeared on BloggingStocks on Mon, 27 Oct 2008 10:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bond marketcredit marketsemerging marketsEuropeinterest ratesinthenewsLIBORMon, 27 Oct 2008 10:58:00 EST<![CDATA[Overnight interest rates rise on global recession concerns]]>http://www.bloggingstocks.com/2008/10/24/overnight-interest-rates-rise-on-global-recession-concerns/http://www.bloggingstocks.com/2008/10/24/overnight-interest-rates-rise-on-global-recession-concerns/http://www.bloggingstocks.com/2008/10/24/overnight-interest-rates-rise-on-global-recession-concerns/#commentsFiled under: International Markets, Forecasts, Recession, Financial Crisis

Short-term interest rates rose, but just slightly Friday, on the increased likelihood a global recession will prompt banks to hoard cash, even as policy makers added dollars to the global financial system. The London interbank overnight rate, or LIBOR, rose for the second straight day, climbing 7 basis points to 1.28%.

In addition, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, rose 4 basis points to 257 basis points Friday. Still, investors / traders should keep in mind the TED spread is still down from 434 basis points a week ago.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Banks hoard dollars, yen in flight-to-safety.

Economist Peter Dawson said Friday concern about a slowdown in GDP among major economies, and a possible global recession, has pushed money out of equity markets -- jolting credit markets.

Continue reading Overnight interest rates rise on global recession concerns

Overnight interest rates rise on global recession concerns originally appeared on BloggingStocks on Fri, 24 Oct 2008 10:35:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorbanksdollarinterest ratesinthenewsLIBORmonetary policyyenFri, 24 Oct 2008 10:35:00 EST<![CDATA[Short-term borrowing costs record first mixed day in a week]]>http://www.bloggingstocks.com/2008/10/23/short-term-borrowing-costs-record-first-mixed-day-in-a-week/http://www.bloggingstocks.com/2008/10/23/short-term-borrowing-costs-record-first-mixed-day-in-a-week/http://www.bloggingstocks.com/2008/10/23/short-term-borrowing-costs-record-first-mixed-day-in-a-week/#commentsFiled under: International Markets, Forecasts, Financial Crisis

After steady progress over the past week, short-term rates took a pause in their journey toward normalcy early Thursday.

The London rate for three-month loans in dollars declined for a ninth consecutive day, but just slightly, dropping about 1 basis point to 3.53%. However, the London interbank overnight rate, or LIBOR, rose for the first time a week, climbing 9 basis points to 1.21%.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Economist Peter Dawson said that, most likely, the pause in the decline in the overnight rate was just that -- a breather.

"I wouldn't read too much into it. One day is not a trend, so provided we don't see short-term rates retrace their steps, the trend remains pointed in the right direction, down," Dawson said.

Continue reading Short-term borrowing costs record first mixed day in a week

Short-term borrowing costs record first mixed day in a week originally appeared on BloggingStocks on Thu, 23 Oct 2008 11:17:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorbanksbond marketcredit marketsinterest ratesinthenewsLIBORmonetary policyThu, 23 Oct 2008 11:17:00 EST<![CDATA[Overnight interest rates fall to lowest level since June 2004]]>http://www.bloggingstocks.com/2008/10/22/overnight-interest-rates-fall-to-lowest-level-since-june-2004/http://www.bloggingstocks.com/2008/10/22/overnight-interest-rates-fall-to-lowest-level-since-june-2004/http://www.bloggingstocks.com/2008/10/22/overnight-interest-rates-fall-to-lowest-level-since-june-2004/#commentsFiled under: International Markets, Forecasts, Financial Crisis

The meltdown in short-term interest rates continues unabated.

The effort by major central banks to increase the supply of dollars globally to free-up credit continued to move rates in the right direction Wednesday -- down. The London interbank overnight rate, or LIBOR, fell another 16 basis points to 1.12% -- its lowest level since June 2004. The London rate for three-month loans in dollars declined for an eighth consecutive day, dropping 29 basis points to 3.54%.

In addition, the difference between what banks and the U.S. Treasury pay to borrow dollars for three months, the TED spread, fell to 248 -- down from 434 basis points a week ago.

Short-term rates, including overnight rates, are key sources of cash for corporations and other large institutions, which use the cash to pay suppliers, make payroll, roll over debt etc. Hence, very high overnight and short-term rates will discourage corporations from conducting business, restricting commerce and slowing the economy, economists say.

Continue reading Overnight interest rates fall to lowest level since June 2004

Overnight interest rates fall to lowest level since June 2004 originally appeared on BloggingStocks on Wed, 22 Oct 2008 10:44:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorBankingSectorbanksbond marketBondMarketcredit marketsCreditMarketsinterest ratesInterestRatesinthenewsLIBORWed, 22 Oct 2008 10:44:00 EST