When banks become reluctant to lend to each other the 3-month LIBOROIS spread increases. Explain this statement.
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‘‘When banks become reluctant to lend to each other the 3-month LIBOR–OIS spread increases.’’ Explain this statement.
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The statement refers to a financial phenomenon involving two key interest rates the London Interbank Offered Rate LIBOR and the Overnight Index Swap O...View the full answer
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