The LIBOR rate (the rate at which banks lend each other short-term funds) increased for the 11th straight day on growing concerns over the creditworthiness of some banks. The rate advanced to 0.536 percent, the highest level since July 7, from 0.510 percent yesterday, according to data from the British Bankers’ Association.
“It’s all part of concern about the system, about whether the sovereign-debt crisis will morph into a bigger systematic crisis,†said Padhraic Garvey, head of investment-grade strategy at ING Groep NV in Amsterdam. “We’re not quite at a point where that’s imminent, but that risk is being priced in.â€
Source: Bloomberg
