I'd be interested in hearing some opinions as to why the 6 month LIBOR is dropping so drastically compared to the other basic rates.
Thanks.
Claude
6 month LIBOR dropping like a rock
Feb 15, 2008
6 Replies
For example, this graph shows the past 3 years vs 15 and 30 year mortgage rates.
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Thanks.
Claude
Evidently this is just another post and run newsgroup, I guess.
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Thanks.
Claude
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80&ct=Line&prods,1,999928&gs'5,250&st=zz&c3dúlse&web=brm&cc=1&prodtype=M&bgcolor=&topgap=&bottomgap=&rightgap=&leftgap=&seriescolor> > or, if this one breaks, try this.... >
Well you are looking at American rates. Base rate there has of course gone down considerably. Fixed rates don't necessarily follow.
Nope LIBOR is finished dead kaput...and will not rise again, Banks simply dont trust one another anymore..its abit like nudge nudge wink wink hey want to by this parcel of sub primes from me.
dropping so drastically compared to the other basic rates.
Well the obvious answer would be that banks expect base rates to drop in the next few months but then go back up again soon afterwards.
LIBOR is an interest rate, not a share/bond price. The reasons you describe are the reasons why it has gone up compared to Gilt Yields. Currently LIBOR is around 0.5% higher than Gilts, whereas traditionally it has been around 0.1% higher.
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