Bank Stress Declining From Highest Since June: Credit Markets
This article is for subscribers only.
Derivatives traders pared bets that European leaders will fail to contain the crisis engulfing the region’s single currency as the European Central Bank delayed a withdrawal of emergency liquidity measures.
Contracts used to bet on the future premium banks will charge each other for dollar loans in London over the federal funds rate dropped for a second day after almost doubling in November. The so-called FRA/OIS spread eased to 34.25 basis points today after soaring to 42.75 basis points on Nov. 30, UBS AG data show.