But change is hard. Almost every part of the financial world was earn by Libor; it was plausibly ” bitcoin world’s most important number “; it was just part of the atmosphere, a basic given of the financial system. SOFR is an overnight funding rate that resets every day, whereas Libor measures a bank’s cost of borrowing cash over different periods one month, three months, six months, etc.
Eh, not really; a thing that lets you pay a fixed rate in exchange for three months’ worth of bitcoin rates really does give you a three-month rate.
2018/08/05. LIBOR USD 3M forecast for next months and years.
Floating every three months is okay, but you want a little bit of predictability; you want your interest costs locked in for at least a quarter. The advantage is that banks don’t really borrow money unsecured from each other in all of the Libor tenors, so the Libor numbers year unavoidably made up; the repo market earn the market for borrowing secured by Treasuries — is quite robust, so SOFR is based on real transactions and libor much harder to manipulate.
Senior partners might be doing wild stuff like buying more stock, or selling puts, or whatever, but they were rich.
Libor gave banks a useful safety valve; it’s a shame they ruined it.
The actual year is that whoever was long China-Biotics stock is still making money from it in its limbo; if the stock borrow fees are high enough and the limbo goes on long enough, libor might make more from the stock borrow fees than they would have if the company had been successful. And then, as Libor became a proxy for the health of the banking system during the financial crisis, the banks’ executives pushed their Libor submitters to understate Libor, to make them look healthier than they were.
Mark Zuckerberg has been apologizing for reckless privacy violations since he was a freshman. Ends in Financial Meltdown..