Shocks pile up on bank funding costs

Wednesday, 16 March 2022

There are three sources of stress piling up upon bank funding costs.

The first is we have discussed before the possibility of commodity price shocks feeding banks into banks. US FRA-OIS remains wide though has not gotten worse:

More symptoms of commodity financing stress are appearing following last week’s nickel blowoff:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.