LIBOR Hasn't Fallen For 46 Days As Someone Is Getting More Desparate To Overpay (By Over 200%) For Funding
3-month USD Libor has not dropped day-to-day since July 25th - a 46 day streak - and while the individual rates indicated by LI(E)BOR are 'around' 37-43bps currently, someone (or more than one) is willing to overpay (by over 200%) as the Fed's USD swap line usage (or non-EURO tender operations) remains $500mm at a rate of 109bps (vs 107bps the previous week). Perhaps it is time for a certain French bank CEO (who enjoys all the media exposure when telling naive gullible mom and pops just how stable his balance sheet is) to sell some more non-performing assets?
3M USD Libor has had a non-negative change from fixing to fixing every day since 7/25 and is starting to escalate a little more recently.
CSFB and Credit Agricole still top the 'pretend' funding list - but we find it a little unusual that CSFB's rate has been flat at 41.5bps for 11 days in a row now (and RBS flat at 40bps for 5 days in a row).
And to make things a little clearer on just who is overpaying across the term structure, Stone & McCarthy provide this simple table:
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