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jonewer

Libor

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Hi all,

I remember someone saying that Libor moved in a three month cycle - getting crunchier then getting looser in three month cycles.

Cant remember the rationale behind it. Can someone remid me? Thanks.

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loans in the interbank market can be/often are arranged to be paid in 3 months, therefore every three months the banks need to find a new loan. Just after the crunch we had three month spikes as banks were scrambling for money over time this scramble has spread out...

Edited by moosetea

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I also think it was september, Dec, Mar and June that are the troubling months.

could be a reason why Mortgage deals have got a bit better in the last few days (at least I think someone posted that yesterday).

Edited by bobthe~

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I also think it was september, Dec, Mar and June that are the troubling months.

could be a reason why Mortgage deals have got a bit better in the last few days (at least I think someone posted that yesterday).

Apparentley RBS has been losing £millions recently due to the narrowing libor spead.

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No, it was August (when things got bad in the interbank market first) and then November. After the turn, it all evened out somewhat... remember that the fewer people were able to rollover in the 3 month gridpoint, the fewer tried it again 3 months later...

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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