Pegasus Capital

The £ 3mth LIBOR fix has been moving higher without any notion of change to BOE rate. As rates have been moving up generally, and there is always additional premium across the year-end turn, it is easy to overlook that higher credit risk is now appearing in the £ LIBOR fix. Market expectations for base rates over next 12 months have fallen back to zero, but £3m LIBOR is at a new cycle high of just above 0.9%

£3Mthfraois
£3M Libor 06Dec18

PegasusCapital - 06/12/2018

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A View from the Bridge - January 2021

The successful start to the UK's vaccination programme is great news but the economic outlook remains highly uncertain so is it time for the Bank of England to take interest rates into negative territory?

PegasusCapital - 28/01/2021