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.
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.
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Has anyone ever told you that your the man? If anyone has't, then let me be the first. Thanks your your help! !
@sohambanerjee506
6 жыл бұрын
you're
so much clearer that all the other websites trying to explain this, thanks!
Your explanation couldn’t be better .You are such an excellent presenter .Thank you
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.
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.
Excellent video as usual. Thanks Tim!
Thank you! This video was very informational.
thanks for the great video Money Week Videos
Wooo! Thank you very much for this video!
I check on new videos of yours before I check my mail. And always rewatch) Legend!
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?
thanks for giving a concise and clear cut explanation
Thank you so much for the straight forward explanation.
Excellent Video!!! Thank you
A fantastic explanation thank you!
the two acronyms kind of (almost) spell out "LABORIOUS" just a coincidence I'm sure. thanks for the great info!
very useful video. thanks
Concise and spot on.Thank you
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?
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
You're the best on the web!
Just..GOLD:-D. Thank you for sharing.
Very nicely explained
the ois should now be available on stock exchange sites...however these maybe snapshots,you really need a index to make a regressive judgement
Thank you for this!
I like your british accent and it is so clean that i can understand everything been said not like the american one
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.
good review. thank you.
superb. thank you.
thanks. very useful
Thank you for the explanation
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?
Best explaination
DOH!!! Thanks... So it is compounded... I guess that's what I get for not watching the whole thing twice...
Is there any SOFR explanation ?
March 2020, here we go again
watch 6:25
what is the SWIFT
@doggingnoob
5 жыл бұрын
Swift is a payment system that processes reserve payments between banks.
2020?
Tbh this guy talks like Christian Bale's character from the Big Short
Starts at 2.20
The way you talk is so funny
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.