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Old 21.10.2011, 10:10
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CHF 3-month LIBOR still creeping up

But still very close to zero:

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Old 23.11.2011, 21:50
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Re: CHF 3-month LIBOR still creeping up

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But still very close to zero:

still rising
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Old 06.12.2011, 16:44
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Re: CHF 3-month LIBOR still creeping up

still creeping up:

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Old 06.12.2011, 17:01
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Re: CHF 3-month LIBOR still creeping up

It still is negligible. Considering the problems in euro zone and potential problems in CH I highly suspect that it is going to go up any time soon. Considering the lower interest rate regime government are going to resort to.

Another argument which suggests it could go up to the reasonable level is that 2-3 months back there was an excess demand for CHF as safe heaven. Now that demand for CHF has faded and so is the oversupply, it should go up a bit but I suspect not too much. We are looking at the range of .1 to .5 in next 12 months.

What do you think?
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Old 06.12.2011, 17:02
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Re: CHF 3-month LIBOR still creeping up

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still creeping up:

I thought now they fixed my mortgage rate for the next 3 months it would drop down again
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Old 06.12.2011, 17:27
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Re: CHF 3-month LIBOR still creeping up

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It still is negligible. Considering the problems in euro zone and potential problems in CH I highly suspect that it is going to go up any time soon. Considering the lower interest rate regime government are going to resort to.

Another argument which suggests it could go up to the reasonable level is that 2-3 months back there was an excess demand for CHF as safe heaven. Now that demand for CHF has faded and so is the oversupply, it should go up a bit but I suspect not too much. We are looking at the range of .1 to .5 in next 12 months.

What do you think?
ECB are forecast to cut their rates this week
Federal reserve said they would keep rates low for one (or was it 2) years.
Bank of England said something similar

So why would the Swiss do something like a rate rise to make buying CHF more attractive?
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Old 06.12.2011, 17:47
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Re: CHF 3-month LIBOR still creeping up

Marton, as first part f my argument says that from Policy stand point it is going to be low interest rate regime. So same view as what you said.

But from trading point of view (CHF libor chart shown is based on the rate in trading floor and not the one pegged by government). This is determined by demand and supply. So from that prospective it is going to get more realistic. So look at the chart here

Overnight Euro LIBOR 0.61643 % 12-05-2011
USD LIBOR - 1 month 0.27410 % 12-05-2011
CHF LIBOR - 3 months 0.05167 % 12-05-2011
GBP LIBOR - 6 months 1.33406 % 12-05-2011
JPY LIBOR - 9 months 0.47429 % 12-05-2011
CAD LIBOR - 12 months 1.77000 % 12-05-2011

CHF has one of the lowest Libor, offcourse we are not looking at all apple as the term is different for different currencies but still just to make the point. this is governed by the demand and supply of the currency and boradly by the government policy.

So in past as they needed more and more CHF in the market, the rates were lower meaning high demands for CHF so CHF gives less incentive to the holder. For currencies with relatively lower demands would have higher libor to attract the buyers. Off course this is a simplistic view and there are large number of factors.

Going by this logic the reference rate set up by govt bodies, (SNB, Fed, BOE, ECB) would remain low but the Libor rate might get to more reasonable levels.

But as it happens in the financial world, it is one view from one point of view. There could be lot fo counter arguments. Hope I am able to explain myself better this time around
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Old 06.12.2011, 19:43
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Re: CHF 3-month LIBOR still creeping up

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(CHF libor chart shown is based on the rate in trading floor
Ah, no, not really.
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Old 07.12.2011, 00:27
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Re: CHF 3-month LIBOR still creeping up

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Marton, as first part f my argument says that from Policy stand point it is going to be low interest rate regime. So same view as what you said.

But from trading point of view (CHF libor chart shown is based on the rate in trading floor and not the one pegged by government). This is determined by demand and supply. So from that prospective it is going to get more realistic. So look at the chart here

Overnight Euro LIBOR 0.61643 % 12-05-2011
USD LIBOR - 1 month 0.27410 % 12-05-2011
CHF LIBOR - 3 months 0.05167 % 12-05-2011
GBP LIBOR - 6 months 1.33406 % 12-05-2011
JPY LIBOR - 9 months 0.47429 % 12-05-2011
CAD LIBOR - 12 months 1.77000 % 12-05-2011

CHF has one of the lowest Libor, offcourse we are not looking at all apple as the term is different for different currencies but still just to make the point. this is governed by the demand and supply of the currency and boradly by the government policy.

So in past as they needed more and more CHF in the market, the rates were lower meaning high demands for CHF so CHF gives less incentive to the holder. For currencies with relatively lower demands would have higher libor to attract the buyers. Off course this is a simplistic view and there are large number of factors.

Going by this logic the reference rate set up by govt bodies, (SNB, Fed, BOE, ECB) would remain low but the Libor rate might get to more reasonable levels.

But as it happens in the financial world, it is one view from one point of view. There could be lot fo counter arguments. Hope I am able to explain myself better this time around
You do know the Swiss banks are being investigated for "fixing" Libor rates. No doubt it is not true.
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Old 15.01.2012, 00:22
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Re: CHF 3-month LIBOR still creeping up

Still creeping up; now almost .06
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Old 15.02.2012, 23:24
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Re: CHF 3-month LIBOR still creeping up

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You do know the Swiss banks are being investigated for "fixing" Libor rates. No doubt it is not true.
3 momth LIBOR is now around 0.08 so still creeping up for no apparent reason.
Meanwhile the Swiss banks continue being investigated for "fixing" Libor rates & according to today's FT a number of senior UBS traders in this area have been suspended/fired/laid off or whatever including Zürich based traders & similarily traders employed by some other major banks.
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Old 04.04.2012, 18:47
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Re: CHF 3-month LIBOR still creeping up

Just got my new fix for the 3 months to June. At just a shade under 1%, it will probably be worthwhile for me to pay off the LIBOR loan if it goes higher.
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Old 03.06.2012, 16:20
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Re: CHF 3-month LIBOR still creeping up

Seems to be back on its way down again.
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Old 28.06.2012, 11:53
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Re: CHF 3-month LIBOR still creeping up

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3 momth LIBOR is now around 0.08 so still creeping up for no apparent reason.
Meanwhile the Swiss banks continue being investigated for "fixing" Libor rates & according to today's FT a number of senior UBS traders in this area have been suspended/fired/laid off or whatever including Zürich based traders & similarily traders employed by some other major banks.

Barclays got fined £390M today for fixing LIBOR interest rates.
Knees must be trembling at the " Swiss banks continue being investigated for "fixing" Libor rates"
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Old 28.06.2012, 12:38
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Re: CHF 3-month LIBOR still creeping up

This time it may turn out to be more than just a slap on the wrist for the bar stewards!
And this from one of their own!?

28 June 2012 Last updated at 09:08 GMT

'Systematic dishonesty' at Barclays, says former boss


http://www.bbc.co.uk/news/business-18622264
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Old 28.06.2012, 15:19
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Re: CHF 3-month LIBOR still creeping up

Barclays shares take a nosedive today!
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Old 28.06.2012, 15:45
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Re: CHF 3-month LIBOR still creeping up

The bigger issue at hand is that TED spreads no longer us Eurodollar (ED) futures against Treasuries. They now use LIBOR..... In other words, the biggest, most liquid, credit hedge in the world is now fixed Its moved sideways for the last 5 months, even though VIX has shown volatility. TED Spreads should have gotten to above 50. But because of the LIBOR crap its still stagnant.

LIBOR makes the entire credit hedging game less useful.

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Old 28.06.2012, 16:10
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Re: CHF 3-month LIBOR still creeping up

So, a question for you finance types. With the Euro situation as it is, would you expect the LIBOR rates to stay very low for the foreseeable future?. Does it require a markedly improved Eurozone or global economy improvement to start the rise of LIBOR interest rates?.
I would just like to get an idea on how the LIBOR is set and what it takes before it starts to rise.
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Old 28.06.2012, 16:18
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Re: CHF 3-month LIBOR still creeping up

LIBOR is typically a function of Inflation and Nominal GDP growth.

So if the economy slows then rates will stay low. The issue Swiss residents have to be worried about is that of the swap rate market. The banks in Switzerland are bust. UBS and CS cant be saved by the SNB, who only has a balance sheet of CHF20Bn (about the size of Luzerner Kantonal Bank).

So even if Swiss LIBOR stays low the swap market will mean that Swiss banks will have to charge mortgages an additional 200bps premium etc etc on their mortgage rate. It all depends on when banks pull their lines of credit.

Once Swiss mortgage rates drop again I would suggest locking in your mortgage for as long as it will go.

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So, a question for you finance types. With the Euro situation as it is, would you expect the LIBOR rates to stay very low for the foreseeable future?. Does it require a markedly improved Eurozone or global economy improvement to start the rise of LIBOR interest rates?.
I would just like to get an idea on how the LIBOR is set and what it takes before it starts to rise.
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Old 28.06.2012, 16:20
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Re: CHF 3-month LIBOR still creeping up

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So, a question for you finance types. With the Euro situation as it is, would you expect the LIBOR rates to stay very low for the foreseeable future?. Does it require a markedly improved Eurozone or global economy improvement to start the rise of LIBOR interest rates?.
I would just like to get an idea on how the LIBOR is set and what it takes before it starts to rise.
My guess would be that interest rates will stay low to encourage business growth until the euro/eurozone situation picks up.
The contrary view is that the weak euro will cause inflation which needs to be controlled by high interest rates.

I do not believe you will get a definitive answer anywhere
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