Foreign banks in US wary after funding costs rise

wall-street-sign-and-US-flag — "It's very difficult to predict this market" - Danske's treasury head, Christoffer Møllenbach

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

Global banks are so far resisting the urge to change their funding strategies in response to US tax changes and widening Libor spreads, which have made it broadly more expensive to fund their US operations whether locally or by borrowing from abroad.

A glut of Treasury bill supply in the first quarter caused the US dollar Libor/overnight index swap basis (Libor/OIS) – a proxy for bank funding costs – to reach levels not seen since 2009. At the same time, US tax reforms implemented on January 1

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact [email protected] to find out more.

You are currently unable to copy this content. Please contact [email protected] to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]