Som å henge flagget opp ned. #inversekurver


Dette er Eurepo, repomarkedet for å låne i europeiske banker. Det er FT Alphaville som snakker:

Because it’s a clear signal of stress in the repo market. The Eurepo curve shows the repo rate for Euro borrowing amongst European banks at maturities from 1-day to 1-year; we interpret this inverted curve as a sign that banks are unwilling to commit the collateral (required for the repo) beyond a 1-month contract. Indeed, it appears that 1-day repos are strongly preferred. The Eurepo curve has shifted a lot in a month.

In other words, banks want to be able to get collateral back and prefer short maturities. It’s also a quite negative view on Europe’s ability to handle the crisis:

Judging from the shift in the Eurepo curve, the banks themselves don’t believe that any boosts will last longer than a month.

As Sober Look noted on Friday, inverted repo curves mean stress in the market, and looking at the shift in the Eurepo curve in the last month, the level of stress has gone up considerably…

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