"Dollar shortage" intensified: LIBOR rising for 31 days to the highest point of the financial crisis

  This article Source: Wind Wind news agency reported that overnight interest rates by 25 basis points as expected, the federal funds rate rose% – interval。
But more important than his Libor has risen 31 days in a row, three-month Libor rose even more in 2008 financial crisis highs。
  Three-month dollar London Interbank Offered Rate is the most important measure of the cost of borrowing。 About 150 trillion (trillion) dollars more than 6 trillion in derivatives and syndicated loans, corporate loans and commercial mortgages refer to the US dollar Libor。   Rising 3-month dollar Libor suggests that the dollar continued tight financing environment, commonly known as dollar shortage。
And the -OIS Libor spreads mainly reflects the systemic pressure of global banking system credit, it spreads generally regarded as interbank lending willingness decline。   Now, the three-month dollar Libor has 31 days to climb%, the most since the 2008 economic crisis, the highest point。
At the same time three-month LIBOR-OIS spread has widened to basis points, the highest level in 2009, when typically are less than 20 basis points。   Strategist MattKing etc. mentioned in the report, which spreads led to widespread nervousness of risk assets。 Higher market interest rates and a weak currency risk assets is likely to contribute to the mutual fund outflows。
If the market which in turn caused a further sell-off, the negative impact on the economy through the wealth effect may be greater than the direct impact of interest rates。   In addition to Citigroup, Morgan Stanley's chief strategist JonathanGarner also said that after the financial crisis, under the pressing global low interest rates and easing, the dollar LIBOR has been at record low。 Since mid-2015 the Fed to raise interest rates open, dollar-denominated LIBOR overall upward trend, it began to rise sharply this year LIBOR hawkish than the Fed may be worried about leaving the market, and this trend is likely to run through a whole year。
  In the private lending market, the Libor benchmark interest rate more radical than the federal dollar Libor six-month period has reached%, while the Federal Reserve to raise interest rates just 25 basis points, the federal funds rate was%。 Now many people are worried that this year the Fed to raise interest rates three times or four times, Ghana countered that the financing costs related to the enterprise is not the federal benchmark interest rate, Libor is the real decision-maker。 Now financing costs have soared, unless the Fed's next performance superdoves, but for now it is almost impossible。
  Morgan Stanley's chief MikeWilson said that in the present case, for the stock market, we believe the third week of January this year, the high point should be the high point of the year。   To make matters worse, the dollar's three-month Libor is often a leading indicator of the dollar, which means that in the future the dollar will soar, which for global risk assets are an not a small shock wave。
  Most matters worse, now almost no one organization can explain what caused the surge in financing costs, what will be the result。 BMO director of fixed assets Margaret said that in the context of the severe credit crisis did not happen, never seen such a dramatic change in interest rates。
To what extent the market will damage?How strong destructive?These we have no way to estimate this is the most terrible。