In earlier article we have discussed about various aspect of Libor and its Impact on buyers credit transaction.
In brief, Libor attempts to answer a fundamental question: What is the cost of money? It does this for a range of currencies (dollars, euros, pounds, etc.) and for a range of maturities.
Continue reading Post Libor World – Impact on Buyers Credit
Buyers Credit transactions are funded on Libor rates. Thus any change in Libor directly impact overall costing of the transaction.
Libor rates started rising in 2015 and pace of which got picked up since beginning of 2017. Below 3 Month Libor and 6 Month Libor charts shows the trend. There are two charts for two range.
Continue reading Rising Libor Rates and Its Impact on Buyers Credit
European Central Bank (ECB) started Quantitative Easing (QE) program last year for European Banks which has resulted into
- Weakening of Euro Currency
- Negative Inter Bank Rates (EURIBOR)
Continue reading Impact of Negative Euribor on Buyers Credit
Note: Since this article was written, below regulation has been implemented. Also Refer Article: Change in LIBOR Tenures and Impact on Trade Finance
Mr. Martin Wheatley – Managing Director, FSA, and CEO Designate, FCA – gave a speech at the Wheatley Review of LIBOR. It contain details on various issues in relation to LIBOR and his final recommendation of rectifying the same. It is worth reading, thus sharing with you complete speech below.
Continue reading Pushing the reset button on LIBOR – Speech by Martin Wheatley