Interbank. At the end of 2021, most term loans, lines of credit or other debt instruments with variable interest provisions tied to the London Interbank Offered Rate (LIBOR) will need to switch to an alternative benchmark. https://www.telegraphherald.com/magazine-websites/biztimes/finance/article_eb0ab61c-9dfb-5dab-a4d8-30d4713f1c39.html
Interbank. China’s government bonds rallied, sending the benchmark 10-year yield to the lowest level since August, after the government indicated that the central bank could loosen its policy to support the economy. https://www.bloomberg.com/news/articles/2021-07-08/china-s-traders-race-to-buy-bonds-on-policy-easing-signals?sref=oriheOus
Interbank. Here’s what went wrong with LIBOR. https://www.bloomberg.com/news/videos/2021-06-29/here-s-what-went-wrong-with-libor-video?sref=oriheOus
Interbank. Only half of loan investors believe their instruments have robust fallback language designed to ensure a smooth transition from the London interbank offered rate, according to a recent survey from Barclays Plc. https://www.bloomberg.com/news/articles/2021-06-25/libor-fears-persist-for-loan-market-with-six-months-to-deadline?sref=oriheOus
Interbank. A key gauge of funding conditions in Europe suggests money markets are pricing in an eventual end to the region’s unprecedented liquidity glut. https://www.bloomberg.com/news/articles/2021-07-02/europe-s-money-markets-prepare-for-world-without-unlimited-cash?sref=oriheOus
Interbank. Look for dollar strength into 2022. https://www.bloomberg.com/news/videos/2021-07-08/look-for-dollar-strength-into-2022-ubs-global-wm-s-schnider-video?sref=oriheOus
Board of Governors of the Federal Reserve. Minutes of the Federal Reserve Open Market Committee. https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20210616.pdf
Federal Reserve Bank of New York. The Federal Reserve Bank of New York today announced that the Secondary Market Corporate Credit Facility (SMCCF) will begin gradual sales of its corporate bond holdings on July 12, 2021. https://www.newyorkfed.org/newsevents/news/markets/2021/20210708
8 July 2021
Alton Drew 