What Do Rate Hikes Have To Do With Crashing Libor-OIS Spreads?

One of the more perplexing moves in recent weeks has been the rapid collapse in the Libor-OIS spread, traditionally a signal of bank credit risk, which has confused many rates traders due to contradictory signal it is sending in a world in which the Fed is supposedly tightening.

This post was published at Zero Hedge on May 14, 2017.