Featured Stories World News Commentary Money Watch Multimedia Prison Planet U.S. News Science And Technology

Bank Funding Crunch Deepens as Swap Rates Soar: Credit Markets

  • Print The Alex Jones Channel Alex Jones Show podcast Prison Planet TV Infowars.com Twitter Alex Jones' Facebook Infowars store

Shannon D. Harrington and Abigail Moses
Bloomberg
May 10, 2010

Europe’s government debt crisis is starting to infect the bank funding system, driving borrowing costs higher from Asia to the U.S. and threatening to slow the global economic recovery.

The interest rate financial companies charge each other for three-month loans in dollars rose to the highest since August, while traders are paying record amounts to hedge against losses in European bank bonds. Yields on corporate debt rose last week by the most relative to government securities since Lehman Brothers Holdings Inc.’s bankruptcy in September 2008, according to Bank of America Merrill Lynch indexes.

European Union policy makers unveiled an unprecedented loan package today worth almost $1 trillion. A statement from the region’s finance ministers highlighted “a risk of contagion which we needed to address.” The European Central Bank will intervene in secondary markets for securities, EU Economic and Monetary Affairs Commissioner Olli Rehn said in Brussels after a 14-hour emergency meeting.

“Whether the markets completely unravel depends on whether politicians can stabilize the peripheral government market,” said James Gledhill, who helps manage about 58 billion pounds ($85 billion) as head of fixed income at Henderson Global Investors Ltd. in London. “The tail risk is the stress on banks which stops them from lending to corporates and feeds through to become a real economy problem.”

Full article here

Bank Funding Crunch Deepens as Swap Rates Soar: Credit Markets 150410banner1

This article was posted: Monday, May 10, 2010 at 11:03 am





Infowars.com Videos:

Comment on this article

Comments are closed.

Watch the News

FEATURED VIDEOS
See the rest on the Alex Jones YouTube channel.

See the rest on the Alex Jones YouTube channel.

© 2013 PrisonPlanet.com is a Free Speech Systems, LLC company. All rights reserved. Digital Millennium Copyright Act Notice.