Loading ...LIBOR3 VS. OIS Spread warning
Finally some one explained why investors to watch this ratio.
“Importantly,the LIBOR-OIS spread,like the TED spread, tells investors how nervous banks about each other’s credibility.If LIBOR heads higher, widening the spread to the Fed Funds Rate, it’s a signal of shrinking liquidity and banks back off from credit transactions.”
Read this article in full. It explains the ratio and its implication.
AND also (Edited): Thanks to Flywheel
Recently I discussed the ratio in my post:
https://fred.stlouisfed.org/series/USD3MTD156N
always more stuff to know! all this stuff good to know, thnx