This Is Why Libor's Moving Higher
Money market reform sends bank borrowing rates to a post-crisis high.
What's Behind Libor's Recent Uptick?
This article is for subscribers only.
Charts like this — of the London Interbank Offered Rate better known as Libor — are enough to make those who remember the 2008 financial crisis shudder with apprehension.
Back then, bank borrowing costs ticked up as investors fretted over the soundness of lending unsecured short-term money to potentially troubled financial institutions. Nowadays, though there's plenty of handwringing about the state of some European banks — Libor's recent move upwards has little to do with financial institutions and yet a lot to do with the 2008 financial crisis.