TBT - LIBOR Was Expected To Drop. It Dropped. What Might This Mean?
Everyone hates LIBOR, until it does something interesting. It used to be the most boring interest rate in the world. When it was that, it was also the most important. Though it followed along federal funds, this was only because of the arb between onshore ((NYC)) and offshore (mainly London, sometimes Caymans) conducted by banks between themselves and their subs (whichever was located where). Unsecured markets used to be central.
Today, LIBOR dropped sharply. People are talking about it. A few have thoughts. This is supposedly highly irregular and unexpected, except that it was expected