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
- posted
16 years ago
6 month LIBOR dropping like a rock
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16 years ago
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16 years ago
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16 years ago
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16 years ago
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.
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- posted
16 years ago
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.
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16 years ago
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.