old LIBOR is rising signaling distress, plus debt ceiling drama
GE2! is euro dollar (dollars outsside usa) and is commonly known as libor.
its important because thats the common rate for non bank entities who enter into contractual lending. they are not supported by the federal reserve directly. Libor is unsecured funding.
zq2! is fed funds which the banks lend to each other and the fed sets this rate. also unsecured funding.
Its important because when LIBOR has gotten ahead and higher than fed funds, its historically signaled distress in the credit markets.
yes libor is set to go away by june this year. but that shift hasnt been completed. there is change to the sofr and repo collateralized lending rate buy june, which is also around when the us treasury runs out of spending power.
its important because thats the common rate for non bank entities who enter into contractual lending. they are not supported by the federal reserve directly. Libor is unsecured funding.
zq2! is fed funds which the banks lend to each other and the fed sets this rate. also unsecured funding.
Its important because when LIBOR has gotten ahead and higher than fed funds, its historically signaled distress in the credit markets.
yes libor is set to go away by june this year. but that shift hasnt been completed. there is change to the sofr and repo collateralized lending rate buy june, which is also around when the us treasury runs out of spending power.