Thursday, April 17, 2008

Update: LIBOR Rises After Worries of Validity

LIBOR has begun rising after a recent WSJ article (see previous post) mentioned that some BBA member banks may be under-reporting their costs for borrowing money. Various analysts estimate that the rate could be 30 to 40 bps lower than it should be. During Thursday trading, the benchmark 3-month rate rose about 8 bps, in what is typically a large daily move for the rate.

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