From The Rumor Bag: Fannie Cuts Off 10 European Banks In Short-Term Funding Market
Courtesy of Tyler Durden
From the rumor bag:
Not too sure what to make of this, but this rumor is around on Chicago area short term rate desks
Just heard that Fannie has cut off up to 10 European banks in the short-term funding mkt (not hearing why), meaning that they will have to borrow elsewhere going forward, thus being blamed for the movement down in price in Fed Funds mkt & Eurodollar mkt (expecting LIBOR to be higher tmrw & next few days b/c more people will need to borrow). That movement is being blamed for the 2yr selloff / curve flattening & thus impacting the long end as well (just not as much).
Setting aside the implications for european short-term funding, it may be time to take a look at Libor futures once again.
More on this topic
(What's this?)
Fannie to Crack Down on Foreclosure Delays
(naked capitalism, 9/3/10)
More Debunking of the “Freddie and Fannie Caused the Crisis” Meme
(naked capitalism, 8/5/10)
A BIG VOTE OF “NO CONFIDENCE” IN GOVERNMENT INTERVENTION
(THE PRAGMATIC CAPITALIST, 8/26/10)
Do you know someone
who would benefit from this
information? We can send your friend a strictly
confidential, one-time email telling them about this
information. Your privacy and your friend's privacy is
your business... no spam! Click here
and tell a friend!