December Linkfest: Week in Preview

? Fear and loaning:  The ?normal? three-month swap rate between the London Interbank Offered Rate (Libor) and the US Federal Reserve?s discount rate used to be about 12 basis points. Today, with the Fed signalling another 50 basis points at least of cuts to official US rates in the wake of the sub-prime crisis, the swap rate is closer to 70 basis points. The blow-out suggests something ominous.Libor and the Fed funds rate are the rates at which banks lend to each other. With the Fed funds rate at 4.5 per cent (and likely to tumble further) and Libor above 5.2 per cent, there ought to be an easy arbitrage opportunity for the international banks ? borrowing from their US counterparts to on-lend to their UK peers and collecting an easy 70 basis points-plus ?turn? in the process.  (Business Spectator)

By:

Article Directory: http://www.articledashboard.com

This article was written by Aaron Aldama. To learn more about making money go to Home Business Chicago.

Source: http://bigpicture.typepad.com/comments/2007/12/december-previe.html
home based business idea, home based small business