What is the LIBOR / OIS spread? - MoneyWeek investment tutorials

Tim Bennett looks at a red flag that can warn of trouble in the banking sector - and potentially the wider economy - and how to interpret what it's telling you.

Пікірлер: 50

  • @MrPBruiser
    @MrPBruiser9 жыл бұрын

    Has anyone ever told you that your the man? If anyone has't, then let me be the first. Thanks your your help! !

  • @sohambanerjee506

    @sohambanerjee506

    6 жыл бұрын

    you're

  • @edouardshadow
    @edouardshadow2 жыл бұрын

    so much clearer that all the other websites trying to explain this, thanks!

  • @PrasadCPerera
    @PrasadCPerera4 жыл бұрын

    Your explanation couldn’t be better .You are such an excellent presenter .Thank you

  • @MoneyWeekVideos
    @MoneyWeekVideos12 жыл бұрын

    Same reason you tend to use gilts and Treasuries when looking at corporate bond spreads - you want the lowest risk rate as the benchmark. You can do the comparison you suggest but it's not that common. Hope that helps. Tim.

  • @albertbrooksjr.1435
    @albertbrooksjr.14356 жыл бұрын

    Very well explained!! I have noticed that the Libor Rate has been rising in recent months, so much so that Bloomberg has been having guests explaining the risks.

  • @tantricsurfer
    @tantricsurfer12 жыл бұрын

    Excellent video as usual. Thanks Tim!

  • @xyzzjp
    @xyzzjp11 жыл бұрын

    Thank you! This video was very informational.

  • @interestrateswaps389
    @interestrateswaps38910 жыл бұрын

    thanks for the great video Money Week Videos

  • @lchaim1754
    @lchaim17548 жыл бұрын

    Wooo! Thank you very much for this video!

  • @Begbietheradge
    @Begbietheradge12 жыл бұрын

    I check on new videos of yours before I check my mail. And always rewatch) Legend!

  • @motionfx1337
    @motionfx133712 жыл бұрын

    Tim Bennett, thank you for your videos. I really enjoy them and get a ton of value out of them. I understand you look at the spread between the 3m LIBOR and equivalent 3m OIS rate. This might be a silly question. Why not take a spread between 3m LIBOR and a LIBOR 1 month rate compounded 3 times?

  • @MasterChiefSpartan
    @MasterChiefSpartan3 жыл бұрын

    thanks for giving a concise and clear cut explanation

  • @melaniedavies5577
    @melaniedavies55773 жыл бұрын

    Thank you so much for the straight forward explanation.

  • @halakukhan
    @halakukhan6 жыл бұрын

    Excellent Video!!! Thank you

  • @grahamandsofiaholeyandsolo5081
    @grahamandsofiaholeyandsolo50815 жыл бұрын

    A fantastic explanation thank you!

  • @uturniaphobic
    @uturniaphobic6 жыл бұрын

    the two acronyms kind of (almost) spell out "LABORIOUS" just a coincidence I'm sure. thanks for the great info!

  • @user-fs8fg1is7f
    @user-fs8fg1is7f8 жыл бұрын

    very useful video. thanks

  • @ameerrizwanazman5514
    @ameerrizwanazman5514 Жыл бұрын

    Concise and spot on.Thank you

  • @heckler73
    @heckler7312 жыл бұрын

    Mr. Bennett, I am slightly confused about one issue. When you say the 3m LIBOR is compared to the OIS over 3m, is the OIS compounded over that period to find the spread--i.e. (1+r)^n ? Or is it just a discrete summation with no concern for compounding?

  • @joed7274
    @joed72744 жыл бұрын

    I don’t have an economics degree but if I’m understanding this correctly that during a recession they would raise variable interest rates on loans if they base it off the LIBOR01 score according to Reuters. That is what I think they base the variable interest rates of my Sallie Mae loans

  • @danman2070
    @danman20703 жыл бұрын

    You're the best on the web!

  • @mbrad26
    @mbrad2610 жыл бұрын

    Just..GOLD:-D. Thank you for sharing.

  • @theTruthSeeker8
    @theTruthSeeker82 жыл бұрын

    Very nicely explained

  • @openbabel
    @openbabel7 жыл бұрын

    the ois should now be available on stock exchange sites...however these maybe snapshots,you really need a index to make a regressive judgement

  • @liliansinyangwe9661
    @liliansinyangwe96613 жыл бұрын

    Thank you for this!

  • @manafjamal4965
    @manafjamal49655 жыл бұрын

    I like your british accent and it is so clean that i can understand everything been said not like the american one

  • @stefanarsov7689
    @stefanarsov768912 жыл бұрын

    Widening TED spread and flat or inverted bond yield curve are also marker of future economic downturn. I like also Conference Board Leading Market Indicators Index (LEI) it is an index of around 10 indicators that have a good track record of predicting recession and slow downs. Most of this indicators are pointing to higher risk in the future but they are not alarming high. So, investors should be careful in next couple of months or 1-2 years.

  • @jfarinacci0329
    @jfarinacci03293 жыл бұрын

    good review. thank you.

  • @davidalen9279
    @davidalen92795 жыл бұрын

    superb. thank you.

  • @lilianmuchimba7297
    @lilianmuchimba72974 жыл бұрын

    thanks. very useful

  • @apurwasharma3582
    @apurwasharma35822 жыл бұрын

    Thank you for the explanation

  • @sayednab
    @sayednab5 ай бұрын

    I have a question, so if I have loan Libor 1M and interest rate changes with 25 basispoint multiple times in a month, would it affect my loan the actual month, or its absolut for Libor 1M?

  • @Ash-lq9cr
    @Ash-lq9cr2 жыл бұрын

    Best explaination

  • @heckler73
    @heckler7312 жыл бұрын

    DOH!!! Thanks... So it is compounded... I guess that's what I get for not watching the whole thing twice...

  • @carloschu7127
    @carloschu7127 Жыл бұрын

    Is there any SOFR explanation ?

  • @BigBadMarketBoy
    @BigBadMarketBoy4 жыл бұрын

    March 2020, here we go again

  • @tantricsurfer
    @tantricsurfer12 жыл бұрын

    watch 6:25

  • @hindiworld7474
    @hindiworld74746 жыл бұрын

    what is the SWIFT

  • @doggingnoob

    @doggingnoob

    5 жыл бұрын

    Swift is a payment system that processes reserve payments between banks.

  • @ef7480
    @ef74804 жыл бұрын

    2020?

  • @devashishbhardwaj4367
    @devashishbhardwaj43674 жыл бұрын

    Tbh this guy talks like Christian Bale's character from the Big Short

  • @How.Dare.You.
    @How.Dare.You.6 жыл бұрын

    Starts at 2.20

  • @fubar8229
    @fubar82296 жыл бұрын

    The way you talk is so funny

  • @XXJRAXX
    @XXJRAXX4 жыл бұрын

    Hey bud, your video wasnt very helpful. I think it will be better if you explain why you are using 3M libor when there is an O/N libor..and how much does fed funds rate play into the OIS.