Liboration Theology

by mike · 2008-05-29

The cost of insuring against default on the bonds of Lehman Brothers, Merrill Lynch and other big banks and brokerages has surged over the last two weeks, threatening to reach the stress levels seen before the Bear Stearns debacle. Spreads on inter-bank Libor and Euribor rates in Europe are back near record levels … there are now concerns that the [US] Fed itself may be exhausting its $800bn (£399bn) stock of assets. It has swapped almost $300bn of 10-year Treasuries for questionable mortgage debt, and provided Term Auction Credit of $130bn.

Share

Tags: Bear StearnseconomicsEuriborFederal ReserveLehman BrothersLiborMerrill Lynch

You may also like...

• 0

  Karl On Bailouts

  2008-10-04

   by mike · Published 2008-10-04

• 0

  Post-Post-Modern Capitalism

  2013-05-11

   by mike · Published 2013-05-11

• 0

  Fancy an Appy?

  2013-02-23

   by mike · Published 2013-02-23

Leave a Reply Cancel reply

You must be logged in to post a comment.