Defaults Won’t Stop Funding Frenzy Started by Central Banks
- Money markets point to dollar Libor staying low until 2023
- Policy makers to do whatever it takes to power the credit boom
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In a world riven by disease and credit risk, traders are betting central bankers will pin down global borrowing costs for years to come -- regardless of the consequences.
With banks awash with cash, money markets are signaling that unsecured lending rates will stay near historic lows across Europe and the U.S., even as rising corporate bankruptcies add pressure to bank balance sheets.