Soc Gen: LIBOR dispersion surging post-LTRO, funding conditions “may not be as health

[dailycollateral]

Looks like that LTRO may not have done so much to alleviate tail risk after all:

Soc Gen: LIBOR dispersion surging post-LTRO, funding conditions “may not be as healthy as they seem” « Daily Collateral

 

[Martinghoul]

That is a very poorly argued point...

 

[dailycollateral]

That is a very poorly argued point...

What are your thoughts?

 

[Martinghoul]

What are your thoughts?

My thoughts are that, in current mkt conditions, dispersion is a fact of life and doesn't really indicate stress. Moreover, nobody actually uses EUR LIBOR and especially the longer tenors, e.g. anything over 3M.

 

[toomuch]

I think the CAC in the greek debt deal is the big news moving EUR and Euro markets lower. Watch out when they impose on non-willing participants. It will definitely trigger a credit event and downgrades and CDS payments will follow.