Plop, Plop, Fizz, Fizz, Oh what a relief it is...
Finally LIBOR rates have fallen meaningfully, and that spells relief. The credit freeze is finally showing real signs of thawing.
Libor-OIS: 2.71% (previous 2.93%)
TED Spread: 2.61 % (previous 3.27%, record was 4.63%)
Rates used:
Libor: 3.83% (previous 4.06%)
OIS: 1.12% (previous 1.13%)
T-bills: 1.22% (previous 0.79%)
Here is a selection of some decent articles on the subject:
Fears about Lehman CDS deadline seen as overstated
Today’s deadline to settle an estimated $400 billion in credit default swaps on debt in failed investment bank Lehman Brothers is unlikely to trigger new havoc in the market, derivatives analysts said.
The world’s most important number?
On the fifth floor of an imposing building in London’s Canary Wharf, six people are putting together one of the world’s most important numbers: L I B O R.
Porsche, Volkswagen - and hedge funds
Porsche used to be the emblem of a go-go City trader. Recently it has become one.
FDIC forgot
$4.4 billion
