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You are here: Home \ Articles of Interest \ LIBOR Volatility is Price of Disrupted Credit

LIBOR Volatility is Price of Disrupted Credit

On August 24th, 2010, posted in: Articles of Interest by Rex Evans

Tags: Economy, Global Markets, Interbank, Interest Rates, LIBOR, London interbank offered rate

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Despite the low LIBOR rates, there is renewed concern about OIS spreads widening signaling growing inter-bank counterparty risk. Low short-term borrowing costs have primarily helped highly rated financial institutions and corporates, while leaving behind those with lower credit ratings.

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