We've heard from two totally random sources that collateral for daily funding, like any short term paper with even a semblance of liquidity, is pretty seriously gummed up. Reverse repo action from the Fed via T-Bills are being used to take up the slack in some cases. General chaos in the repo markets is another theme we keep hearing out there.
Combine this with LIBOR shenanigans (3.77% on 3 month LIBOR? I think not.) and the rumor that banks not even filling LIBOR+100 quotes (what's the point of quoting LIBOR if the reality is 100 basis points higher) and it sounds like the credit markets haven't learned a damn thing in the last 60 days. What's it mean when all the market actors are desperately trying to conceal real price discovery?
Can anyone out there give us a real, filled overnight rate quote?
Or can we just start to ignore LI(e)BOR already? NYBOR sounds so much cooler anyhow.
Posted by guest , Sep 25, 2008 10:59AM
http://www.starpulse.com/Music/Aiken,_Clay/gallery/Clay-Aiken-rca12/
Posted by MuniShe , Sep 25, 2008 11:03AM
SIFMA is the weekly tax-exempt benchmark and has reset to 7.96% this week, even that is not getting the weekly variables (municipals) out of the door. Seeing discounts up to 10% for two weeks on TOB paper and high quality short term paper.
Posted by guest , Sep 25, 2008 11:05AM
anyone got the latest overnight LIBOR?
Posted by guest , Sep 25, 2008 11:21AM
the ICAP version of LIBOR fixed at 4.21% today....not sure if it's a reliable or credible metric as it's only been running since june.
Posted by guest , Sep 25, 2008 11:22AM
Hearing rumors that GE Capital won't be doing any more deal-related financings for the rest of the year.
Any truth to this?
Posted by guest , Sep 25, 2008 11:22AM
o/n libor fixed at 2.56%
Posted by mj , Sep 25, 2008 11:23AM
#3 BBA fix was 2.5 down from 2.624 yest. has been falling since being over 6 last tues but still way higher than it was before that
Posted by guest , Sep 25, 2008 11:24AM
o/n libor fixed at 2.56%
Posted by guest , Sep 25, 2008 11:26AM
o/n libor fixed at 2.56%
Posted by mj , Sep 25, 2008 11:28AM
sorry wrong source. BBA was 2.5625 down from 2.6875
Posted by guest , Sep 25, 2008 11:30AM
5 - Do tell more....
Posted by guest , Sep 25, 2008 11:37AM
Number 5 here.
That's just what I've heard anecdotally - cannot confirm or deny, was hoping to see if others had heard the same.
Posted by guest , Sep 25, 2008 11:39AM
Number 5 here.
That's just what I've heard anecdotally - cannot confirm or deny.
Was hoping to see if anyone else had heard similar rumblings.
Posted by guest , Sep 25, 2008 11:42AM
What is this LIBOR?
Posted by guest , Sep 25, 2008 11:43AM
@5 - GE came out this morning and said that they don't need to do any term funding for the reminder of 08. Could mean that they handle any needs with short term funding until market improves.
Anyone hear what BBA Associate numbers were?
Posted by guest , Sep 25, 2008 11:51AM
5 again - here's the only "official" information I can find:
GE Capital has been caught in the downdraft hurting financial stocks in recent weeks. The unit provides nearly half of GE's profit.
Chairman and CEO Jeff Immelt, speaking to analysts in a conference call, was not encouraging about GE Capital's financial future.
"We expect to see higher losses and loss provisions and lower gains as the economy evolves," he said.
Chief Financial Officer Keith Sherin told analysts that GE is aiming to reduce the size of its financial business.
Posted by guest , Sep 25, 2008 11:53AM
GE said that they don't need to do term funding for the remainder of 08. Sounds like any immediate needs they have will just be done with short term funding. Not surprising given the current state of the bond market.
Posted by guest , Sep 25, 2008 11:54AM
Reduce the business? Weren't they buying ML Capital and Citi's MM Loan group just a few months ago?
Posted by guest , Sep 25, 2008 11:56AM
5 here again.
@15 and @17 - the rumor I heard was independent (well, perhaps related, but separate) from that announcement.
Posted by guest , Sep 25, 2008 12:37PM
What is dark liquidity?
http://www.youtube.com/watch?v=EP5PA5_Lokw
Posted by guest , Sep 25, 2008 1:00PM
Is the peacock facing extinction under GE's nightmare scenario?
Posted by guest , Sep 25, 2008 2:44PM
some bullshit here.....
Libor is pointless...
look at OIS spread...the swap market is showing on at least 100bps over libor.
if your lucky...levels on cd's are showing the same...
Posted by guest , Sep 25, 2008 2:51PM
some bullshit here.....
Libor is pointless...
look at OIS spread...the swap market is showing on at least 100bps over libor.
if your lucky...levels on cd's are showing the same...
Posted by guest , Sep 25, 2008 2:51PM
some bullshit here.....
Libor is pointless...
look at OIS spread...the swap market is showing on at least 100bps over libor.
if your lucky...levels on cd's are showing the same...