A recent "Short Duration Strategy from Citi entitled, "When will short term funding costs decline? comments, "Money market rates remain elevated after grinding up since summer, and this is a manifestation of the dysfunction in the money markets that was engendered by money market reform. The rise in non-financial CP and ABCP rates has been much more muted. This is attributable to their smaller market sizes and also the fact that non-financial CP and ABCP have much shorter tenors, which has enabled prime funds to hold on to these even while they were witnessing sharp outflows. Higher financial CP, Libor, and SIFMA rates have caused a significant increase in funding costs for short-term issuers in the financial and municipal sectors. So, when will funding costs decline for these issuers? As we discuss, this will depend mostly on the outlook for demand, which in each case, is slightly murky."

Email This Article




Use a comma or a semicolon to separate

captcha image

Daily Link Archive

2024 2023 2022
March December December
February November November
January October October
September September
August August
July July
June June
May May
April April
March March
February February
January January
2021 2020 2019
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2018 2017 2016
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2015 2014 2013
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2012 2011 2010
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2009 2008 2007
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2006
December
November
October
September