Articles of Interest
Debate Begins on Regulatory Reform Bill – SIFMA
http://www.sifma.org/blastemails/comMUNIcations/comMUNIcations-050610.html
Articles of Interest
LIBOR On the Move
Three-month LIBOR rates head above 50 bps for the first time since last summer. European debt fears seem to be the culprit, as opposed to the likelihood of a monetary policy shift. When the trust among banks and sovereigns returns, LIBOR tends to track the Fed Fund target rate. (Bloomberg)
Articles of Interest
Bernanke Advocates for Swap Desks Staying in Banks
The full letter to the Senate Banking Committee (WSJ), where the Fed Chairman touches on the reasons for not spinning off swap books from banks, echoing sentiments from Sheila Bair at the FDIC. Major downfalls of a spin-off: reduced regulation, reduced liquidity available in stressful times, and reduced competition with Read more…
Articles of Interest
Michigan State Looks to Basis Swap to Reduce Interest Expense
Not exactly a turn at the roullette wheel, but the University is switching from SIFMA to 67% of 1-Month LIBOR + spread on its weekly floaters in a play to benefit from the current relationship between taxable and tax-exempt curves. The benefits could be magnified by the potential for increases Read more…
Articles of Interest
Stronger Economies Begin to Tighten Monetary Policy
While the Fed decided yesterday to remain extremely ‘accomodative’ for an ‘extended period’ after its FOMC policy meeting yesterday, economies that have weathered the credit crisis best like Australia and Brazil are already into the tightening phase. With Canada likely next to move, how much more strength do we need in Read more…