Tag Archive: Libor

CPI’s At Fives Yet Treasury Auctions

2021-08-12

A momentous day, for sure, but one lost in what would turn out to be a seemingly endless sea of them. October 8, 2008, right in the thick of the world’s first global financial crisis (how could it have been global, surely not subprime mortgages?) the Federal Reserve took center stage; or tried to.

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The Global Engine Is Still Leaking

2020-04-16

by Jeffrey P. Snider

2020-04-16

Federal Reserve: Liabilities & Capital, 1984-2019

An internal combustion engine that is leaking oil presents a difficult dilemma. In most cases, the leak itself is obscured if not completely hidden. You can only tell that there’s a problem because of secondary signs and observations.If you find dark stains underneath your car, for example, or if your engine smells of thick, bitter unpleasantness, you’d be wise to consider the possibility.

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Fragile, Not Fortified

2020-04-09

by Jeffrey P. Snider

2020-04-09

On Sunday, Argentina’s government announced it was postponing payment on any domestically-issued debt instruments denominated in foreign currencies. That means dollars, just not Eurobonds. At least not yet. In response, ratings agencies such as Fitch declared the maneuver a distressed debt exchange.In other words, technically a default.

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Banks Or (euro)Dollars? That Is The (only) Question

2020-04-03

by Jeffrey P. Snider

2020-04-03

UST Yields & Money Alternates, 2007-2009

It used to be that at each quarter’s end the repo rate would rise often quite far. You may recall the end of 2018, following a wave of global liquidations and curve collapsing when the GC rate (UST) skyrocketed to 5.149%, nearly 300 bps above the RRP “floor.” Chalked up to nothing more than 2a7 or “too many” Treasuries, it was to be ignored as the Fed at that point was still forecasting inflation and rate hikes.

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It’s Not About Jobless Claims Today, It’s About What Will Hamper Job Growth In A Few Months

2020-03-29

by Jeffrey P. Snider

2020-03-29

You’ve no doubt heard about the jobless claims number. At an incomprehensible 3.28 million Americans filing for unemployment for the first time, this level far exceeded the wildest expectations as the economic costs of the shutdown continue to come in far more like the worst case. And as bad as 3mm is, the real hidden number is likely much higher.

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Is GFC2 Over?

2020-03-18

by Jeffrey P. Snider

2020-03-18

Is it over? That’s the question everyone is asking about both major crises, the answer is more obvious for only the one. As it pertains to the pandemic, no, it is not. Still the early stages. The other crisis, the global dollar run? Not looking like it, either.

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Das Einmaleins des neuen Leitzinses

2019-06-18

by Markus Diem Meier

2019-06-18

Die Schweizerische Nationalbank (SNB) führt neu einen Leitzins ein. Hatte sie denn bis jetzt gar keinen? Doch, hatte sie, aber der hiess anders. Nutzen wir doch die Gelegenheit, um zu klären, was eigentlich ein Leitzins ist. Und was sich nun geändert hat. Eine Notenbank benutzt einen Leitzins, um das gesamte Zinsniveau in einem Land zu beeinflussen – und damit indirekt den Gang der Wirtschaft.

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Global Doves Expire: Fed Pause Fizzles (US Retail Sales)

2019-05-18

by Jeffrey P. Snider

2019-05-18

Before the stock market’s slide beginning in early October, for most people they heard the economy was booming, the labor market was unbelievably good, an inflationary breakout just over the horizon. Jay Powell did as much as anyone to foster this belief, chief caretaker to the narrative. He and his fellow central bankers couldn’t use the word “strong” enough.

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LIBOR Was Expected To Drop. It Dropped. What Might This Mean?

2019-02-08

by Jeffrey P. Snider

2019-02-08

Everyone hates LIBOR, until it does something interesting. It used to be the most boring interest rate in the world. When it was that, it was also the most important. Though it followed along federal funds this was only because of the arb between onshore (NYC) and offshore (mainly London, sometimes Caymans) conducted by banks between themselves and their subs (whichever was located where).

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FX Daily, May 09: Oil Prices Surge and Dollar Gains Extended Post Withdrawal Announcement

2018-05-09

by Marc Chandler

2018-05-09

The US dollar is broadly higher as the 10-year yield probes above 3.0%. Disappointing French industrial production and manufacturing data for March provided additional incentive, as if it were needed, to extend the euro's losses. The euro dipped below $1.1825. The single currency is off a cent this week after falling nearly two last week. A 38.2% retracement of the euro's gains since the beginning of last year is found a little above $1.1700 and...

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FX Daily, March 28: Three Developments Shaping Month-End

2018-03-28

by Marc Chandler

2018-03-28

Today may be the last day of full liquidity until next Tuesday, after the Easter holidays. We identify three developments that are characterizing the end of the month, quarter, and for some countries and companies, the fiscal year. Equity market sell-off, bond market rally, and the continued rise in LIBOR.

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FX Weekly Preview: The Investment Climate

2018-03-26

by Marc Chandler

2018-03-26

The investment meme of a synchronized global upturn has been undermined by the recent string of US and European economic data. The flash March eurozone composite reading fell to 55.3, the lowest reading since January 2017. Although Q4 17 US GDP may be revised higher (toward 2.8% from 2.5%) mostly due to greater inventory accumulation, the curse of weak Q1 GDP appears to be showing its hand again, with forecasts now coming in below 2%.

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Risk Off: Global Stocks Slide As “Fire And Fury” Results In “Selling And Fear”

2017-08-10

by Tyler Durden

2017-08-10

US futures are set for a sharply lower open (at least in recent market terms) following a steep decline in European stocks and a selloff in Asian shares, following yesterday's sharp escalation in the war of words between the U.S. and North Korea. In a broad risk-off move U.S. Treasuries rose, the VIX surged above 12 overnight, while German bund futures climbed to the highest level in six weeks. The Swiss franc gained 1.2 percent to 1.1320 per euro...

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How The US Government Let A Giant Bank Pin A Scandal On A Former Employee

2017-05-12

by Tyler Durden

2017-05-12

The following is an excerpt from David Enrich's nonfiction financial and legal thriller The Spider Network: The Wild Story of a Math Genius, a Gang of Backstabbing Bankers, and One of the Greatest Scams in Financial History. (Read part of the prologue here; another excerpt can be found here) This excerpt takes place shortly after the accused mastermind of the Libor scandal, Tom Hayes, is fired from his job at Citigroup, kicking government...

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Negative Consumer Financing Rates in Germany, Soon More Negative in Switzerland?

2016-08-07

by Tyler Durden

2016-08-07

Things are increasingly upside down in the brave new centrally planned world: thanks to negative deposit rates central banks have put an explicit cost on saving, while in various instances, such as taking out a mortgage in Denmark and the Netherlands, the bank actually pays the borrower, thus rewarding living beyond one's means.

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SIBOR Forex Banking Fraud – another FX rate rigging scandal

2016-07-06

by Elite Services

2016-07-06

Forex has been the big banks secret gold mine, supporting their other losing operations (like normal banking business, lending, etc.). To a large extent this has been unraveling, and this SIBOR lawsuit is another attack on their risk free profit center (FX). Read the entire lawsuit released by Elite E Services here in full.

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LIBOR Alternatives Taking Shape

2016-05-24

by Marc Chandler

2016-05-24

Since the LIBOR scandal erupted, US officials have been working toward an alternative benchmark. In 2014, the Fed set up a working committee that includes more than a dozen large banks and regulators Before the weekend the committee (Alternative Reference Rates Committee) proposed two possible replacements for LIBOR. There reportedly was some consideration of …

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FINMA Fines UBS, All Markets are Manipulated?

2016-04-14

by George Washington

2016-04-14

Gold and Silver Are Manipulated Deutsche Bank admitted today that it participated with other big banks in manipulating gold and silver prices. In 2014, Switzerland’s financial regulator (FINMA) found “serious misconduct” and a “...

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