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A forgotten financial metric is closing in on crisis-era levels — and it could set everything ‘in reverse’





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  • A forgotten financial metric showing the spread between the dollar London Interbank Offered rate and the Overnight Index Swap rate has widened to levels only exceeded in 2007 to 2009.
  • “The good news is that the widening so far has been relatively technical, and driven more by financing shifts following US tax reform than by genuine banking stresses,” Citigroup strategists led by Matt King said.
  • “The bad news is that we think it has further to go in coming months, and expect the effects to become more far-reaching.”

Remember LIBOR?

The scandal-plagued measure of financing costs once called the world’s most important read more >>>

Source:: BusinessInsider.Com

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