Most of the 17-basis-point increase in USD 3-month LIBOR levels since the end of June should be attributed to regulatory considerations and not to the Fed monetary policy, believe analysts at Bank of America Merrill Lynch. Mark Cabana and colleagues said in their August 24 research piece titled “LIBOR into and out of reform” that they believe LIBOR spreads should narrow after the October reform date and contribute to near-term FRA-OIS curve inversion. LIBOR spread could widen further in September As outlined by ValueWalk, a new SEC rule will come into play in October affecting money market funds and liquidity across…
LIBOR Problems Due To Money Market Mutual Changes: BAML
Mani
Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports