The Dead Cat Has Landed and Is Not Moving: Libor for Dollars Rises for Eighth Day as Risk Concern Deepens

The rate banks say they pay for three-month loans in dollars climbed for the eighth consecutive day as concern over counterparty risk heightened banks’ reluctance to lend to one another, Bloomberg reports.

The London interbank offered rate, or Libor, for such loans rose almost one basis point to 0.484 percent today, according to data from the British Bankers’ Association. That’s the highest level since July 29. The dollar Libor-OIS spread, a gauge of banks’ reluctance to lend widened to the most since Aug. 13.

Three-month Libor is a benchmark for about $360 trillion of financial products worldwide