Tuesday, 8 April 2008

Credit conditions in the UK are improving

(click on the chart for a sharper image)

Do you see what I see? Yes, credit conditions are improving for UK banks. The spread between 3 month interbank loans and 3 month repos using gilts as collateral has fallen over the last couple of days. In fact, between March 31st and April 8th, the spread has fallen 3 basis points.

With spreads now narrowing, the credit crisis is over. It is over isn't it?

1 comment:

Anonymous said...

I take it you're joking and lampooning the MSM's penchant for taking the tiniest of short term good news out of context to spin into recovery.

That looks similar to the Nov 07 pause before hitting a new peak. Not saying you're wrong, but definately early.