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The ‘Dollar’ Is Itself Disturbed
by Jeffrey P. Snider
Alhambra Partners
Yesterday, I briefly surveyed the outward credit risk portion of the “dollar” financing process, so it makes sense to update interbank risk. As you might expect, given hints of redrawing liquidity and a “dollar” disruption, interbank rates jumped in the early part of June. Even the federal funds rate (effective) moved up to 14 bps, the highest fix since early May 2013. Twelve-month LIBOR is at its highest rate since January 2013.
As I have maintained throughout, if this was just interbank rates adjusting to expectations of the Fed ending ZIRP then we should expect an almost smooth realignment, perhaps only clustered around FOMC statements to one effect or another.
Continue Reading at AlhambraPartners.com…
Source: http://financialsurvivalnetwork.com/2015/06/the-dollar-is-itself-disturbed/?utm_source=rss&utm_medium=rss&utm_campaign=the-dollar-is-itself-disturbed
