Skip to main content

Totally Unfounded Rumors: Morning Edition - Broken Paper

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.