Forex Playmaker reports that the 3-month Libor rate for US dollar reached an 11-month high today:
The closely watched 3-month Libor rate for US dollars reached an 11-month high today, following Moody’s latest Greece ratings cut issued yesterday.
Libor for 3-month dollar loans rose to 0.539% today from 0.537% yesterday. The present rate is the highest seen since July 6, 2009.
They also note this rate has more than doubled year to date.
Here’s a chart that shows – quite strikingly – how quickly banks are re-learning the feeling of fear:
Can you say “uh oh”? (Source: StockCharts.com)
A continuation of this upward trend – which would appear to be a near certainty – would not be good for banks. Are we ready for Credit Crisis, Part Deux?
Recent Comments