Tuesday, May 19, 2009
Signs of Banking Recovery
Bloomberg: Libor Falls Most in Four Months
The London interbank offered rate, or Libor, for three- month dollar loans declined three basis points today to 0.75 percent, the British Bankers’ Association said, bringing its drop in the past two days to seven basis points, the most since Jan. 13. The rate has decreased in each of the past 35 days.
Posted by hmm @ 01:18 PM (590 views) Add Comment
3 Comments
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1. sold 2 rent 1 said...
Looks like the banks are now set to start lending again to set up the next bubble.
The final commodity spike to round off the 29-30 cycle is coming soon, with the biggest winners (in reverse order) being oil, then gold, and most of all silver.
2. japanese uncle said...
House of cards on an extremely flimsy premise that property price will not go down any further.
Bank stress tests in the US is the same.
3. jack c said...
Scratch beneath the surface and this is whats currently happening (Source MoneyŁacts)
The cost of the average fixed-rate deal has risen in the last month, with borrowers wanting long-term deals seeing rises of up to 0.20%.
Data from Moneyfacts.co.uk show that 10-year fixed rate deals have gone up by an average of 0.04% over the last month, from 5.74% to 5.78%.
Two-year fixes have gone from an average rate of 4.61% to 4.64%.
Borrowers with an LTV of over 85% have been the hardest hit by rate rises over the last month.
Borrowers wanting a 10-year fixed rate at 85% have seen rates go up 0.20%, while two-year fixes at 90% LTV have gone up 0.12%.
Michelle Slade, analyst at Moneyfacts.co.uk, says: "Borrowers hoping to take advantage of this period of low interest rates and lock into a long-term fixed are going to be disappointed.
“In the last few weeks, swap rates for longer term deals have increased and this is being passed on through higher mortgage rates.”
Slade adds: “Two-year swap rates have continued their downward trend, but this is not being reflected in new mortgage rates.
“Lenders are in effect taking bigger margins from the more popular shorter-term fixed deals.
"The best deals are still to be found for borrowers with a 40% deposit, but even these have not been immune from the increase in rates, even though the risk of foreclosure on such loans is minimal.”