Fx traders: there has been a lot of desk talk about LIBOR spreads recently and quite frankly i don’t know what the fuss is about. (A little note, I know i’m guilty about banging on about it too)
In the last two weeks i’ve read 6 stories on Zero Hedge, 8 money market expert opinions, 4 Bloomberg reports, and 12 institutional research takes. The reasons (and pick your) best are: short term paper issuance, repatriation, USD funding shortage, canary in a coal mine credit stress……the list goes on ad infinitum
Three of my take outs:
Spot: NOT BOTHERED
Keep a lazy eye of it because it only matters when it matters.
Keep tuning that noise filter because markets always change.