LIBOR

What Do Rate Hikes Have To Do With Crashing Libor-OIS Spreads?

Since peaking last September at 44bps, 3m Libor-OIS has seemingly collapsed each time the market got excited about higher rates. In fact, whenever the fed funds implied probability of a rate hike jumped just prior to an upcoming FOMC meeting, a drastic narrowing of Libor-OIS ensued.  What rate hikes have to do with Libor-OIS spreads

Betting Against A June Rate Hike? Something's Going On

We noted yesterday that the recent trend of increased volumes into Eurodollar future out-months was 'odd' but the sudden surge in interest in Eurodollar calls (vs puts) suggests more than just a few prop bets are being placed on the fact that The Fed does not hike rates in June.

How The US Government Let A Giant Bank Pin A Scandal On A Former Employee

When the CFTC asked Gibson Dunn to come up with a list of individuals who should be on the subpoenas that the agency was preparing to send to UBS -- names that would determine the search terms that the bank used to sieve through millions of pieces of internal communications -- one was especially prominent: Tom Hayes.

"Someone Is Blowing Up": RBC Warns China-Induced Unwinds Are Escalating

"Something is off the past few weeks...  somebody’s ‘mean-reversion’ strategy (likely a stat arb / quant fund) has triggered ‘stop outs’ as the underlying commodities space now ‘catches down’ to the behavior already exhibited across the energy equities space throughout the course of 2017."

Chris Whalen: "The Dollar Super-Cycle Ends"

It seems that many market indicators such as the dollar and LIBOR suggest a market that is either schizophrenic or dysfunctional.  Our guess is the latter...