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For LIBOR, a borrowing rate is set daily by a panel of banks for ten currencies and for 15 maturities.
DealBook » UBS Said to Have Sought Immunity in Rate Investigation | The Swiss bank UBS is the unidentified cooperating party in an investigation by Canadian regulators into a potential conspiracy to influence a borrowing rate, Bloomberg News reports, citing unidentified people with knowledge of the inquiry.
Analysts warned that a borrowing rate cut would put pressure on the lira, Turkeys currency.
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WALL STREET JOURNAL Criminal Inquiry Said to Be Under Way on Possible Rate Manipulation | The Justice Department is conducting a criminal investigation into whether big banks manipulated a benchmark borrowing rate, Reuters reports, citing an unidentified person familiar with the matter.
BLOOMBERG NEWS JPMorgan and Deutsche Bank Accused in Interest Rate Case | JPMorgan Chase, Deutsche Bank and HSBC are among a group of firms that an unidentified bank has accused of participating in a conspiracy to influence a key borrowing rate, Bloomberg News reports.
The notes fetched a 1.37% yield, a lower borrowing rate for the government than the 1.49% yield garnered in last month's auction.
Several economic factors could converge in the coming weeks to put more pressure on growth, including a decision from Powell about whether to again raise a key borrowing rate in December and an expected fight over federal spending levels.
Its mission, to set a suitable borrowing rate for 15 different countries, is a bit like creating a single-size uniform for an army of soldiers who range from the obese to the stick thin.
Calculations get a bit messy, but the arbitrage can make sense if (a) your borrowing rate is low enough; (b) the deferral is long enough (remember, deferral merely postpones the tax); and (c) your interest expense is deductible against high-bracket income.
He said the European Central Bank, which sets a major borrowing rate for the 16 nations that use the euro as a common currency, has done well.
At 3 percent for federal taxes, she called the penalty "not a bad borrowing rate".
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