Libor
UK Libor unmoved by recession news
The Bank of England (BoE)'s predictions of continued economic downturn failed to move the sterling interbank markets today.
Ted spread continues to fall
Following last week's rate cuts, the Ted spread, which tracks the difference between three-month Libor and Treasury bills, had fallen today to 2.01 when trading opened, the same level as September 15, when Lehman Brothers filed for bankruptcy.
BoE announces 1.5% rate cut
At 1200 GMT, the Bank of England (BoE) announced a 1.5% reduction of the official bank rate, while interbank lending rates fell further.
Interbank markets remain stable
Confidence in the interbank market climbed today, reflected in the decline of the Ted spread and Libor rates.
Ted spread and Libor continue to fall
Interbank confidence continued to rise today, reflected in the fall of the Ted spread and certain Libor rates.
Dollar Libor leads the way down after Fed rate cut
Libor rates fell across the board today, as stock markets in Europe and Asia continued to pick up and the US Federal Reserve announced a 50 basis point rate cut.
Governments step up and Ted spread goes down
The Ted spread, the difference between US Treasury bills and three-month Libor, fell today for the first time since October 6, following the news of the planned European bank rescue package.
Ted spread rises and Libor rates drop across the board
Perceived counterparty risk in the financial system reached new heights today as the Ted spread, the difference between three-month Libor and US Treasury bills, opened at a record 4.64%.
Ted spread continues to rise as markets fall
The daily record-breaking climb of the Ted spread, an index which tracks the difference between three-month Libor and US Treasury bills, continued today as world stock markets plummeted.
Ted spread continues to climb
The Ted spread, which is used to measure perceived counterparty risk by tracking the disparity between three-month Libor rates and US Treasury bills, broke yesterday’s record high by 0.10%.
"Fear index" hits high as Ted spread breaks 4%
The Ted spread, which tracks the difference between three-month Libor and US Treasury bills, hit yet another all time high today, reaching 4.03% at 1400 BST.
Overnight Libor rockets
Overnight Libor shot up today as a tumultuous morning dented confidence in the interbank lending markets.
Strain persists on interbank lending
Instability in the interbank lending markets continued today, despite the approval of the revised $700 billion bailout legislation by the US Senate.
Interbank lending remains volatile as bailout is revised
The interbank lending markets remained unstable today, after the US Senate agreed to vote on an amended version of the rescue package.
Interbank lending suffers as $700 billion rescue vehicle breaks down
Pressure on the interbank lending markets intensified today, after Congress rejected the US government’s bailout plan.
Strain eases on interbank lending
After a turbulent week, pressure on the interbank lending markets eased today as further injections of liquidity were announced and talks on the US financial rescue package resumed.
Pressure eases on interbank lending
Strain on the interbank lending markets is easing as large infusions of liquidity start to take effect and market confidence improves.
Interbank lending still under pressure
Interbank lending markets remained under stress today, despite large injections of liquidity by the world’s central banks.
Profiting from divergence
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Libor's true colours
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Age of reason or age of procedure?
The risk management industry's increasing use of sophisticated models and technology – when coupled with poor modelling choices – can cause problems. Stephen Blyth calls for a return to to judgement and reasoning, and a halt to proceduralism.