{"id":33058,"date":"2022-10-27T14:55:58","date_gmt":"2022-10-27T21:55:58","guid":{"rendered":"https:\/\/www.itmtrading.com\/blog\/?p=33058"},"modified":"2022-10-27T20:10:22","modified_gmt":"2022-10-28T03:10:22","slug":"interest-rates-benchmarks-to-affect-you-everyone-else","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/interest-rates-benchmarks-to-affect-you-everyone-else\/","title":{"rendered":"Interest Rates Benchmarks to Affect You &#038; Everyone Else"},"content":{"rendered":"<p>We&#8217;ve talked a lot about this being a Jenga economy and anything. The economy is now so fragile because of all of the Fed money printing and the global central bank money printing that any little piece that comes out could topple the whole thing. And we&#8217;re coming up to a place where we&#8217;ve got a major thing that&#8217;s about to happen. I&#8217;m going to take you down this rabbit hole that is intentionally made so complex, and I&#8217;ll try and simplify it for you. But this is really important!<\/p>\n<p><strong>CHAPTERS:<\/strong><\/p>\n<p>0:00 Introduction<\/p>\n<p>1:24 LIBOR &amp; SOFR<\/p>\n<p>2:43 Derivatives<\/p>\n<p>6:02 Integration in Financial System<\/p>\n<p>13:55 Libor Act<\/p>\n<p>25:33 Fed Rate Hike<\/p>\n<p>29:18 G7 on Standby<\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide1-5.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-33059\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide1-5-1024x768.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide1-5-1024x768.jpg 1024w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide1-5-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide1-5-768x576.jpg 768w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide1-5-1536x1152.jpg 1536w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide1-5-624x468.jpg 624w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide1-5.jpg 1920w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide2-4.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-33060\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide2-4-1024x768.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide2-4-1024x768.jpg 1024w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide2-4-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide2-4-768x576.jpg 768w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide2-4-1536x1152.jpg 1536w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide2-4-624x468.jpg 624w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide2-4.jpg 1920w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide3-4.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-33061\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide3-4-1024x768.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide3-4-1024x768.jpg 1024w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide3-4-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide3-4-768x576.jpg 768w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide3-4-1536x1152.jpg 1536w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide3-4-624x468.jpg 624w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide3-4.jpg 1920w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide4-4.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-33062\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide4-4-1024x768.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide4-4-1024x768.jpg 1024w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide4-4-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide4-4-768x576.jpg 768w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide4-4-1536x1152.jpg 1536w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide4-4-624x468.jpg 624w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide4-4.jpg 1920w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide5-4.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-33063\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide5-4-1024x768.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide5-4-1024x768.jpg 1024w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide5-4-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide5-4-768x576.jpg 768w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide5-4-1536x1152.jpg 1536w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide5-4-624x468.jpg 624w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide5-4.jpg 1920w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide6-3.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-33064\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide6-3-1024x768.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide6-3-1024x768.jpg 1024w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide6-3-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide6-3-768x576.jpg 768w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide6-3-1536x1152.jpg 1536w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide6-3-624x468.jpg 624w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide6-3.jpg 1920w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide7-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-33065\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide7-2-1024x768.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide7-2-1024x768.jpg 1024w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide7-2-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide7-2-768x576.jpg 768w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide7-2-1536x1152.jpg 1536w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide7-2-624x468.jpg 624w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide7-2.jpg 1920w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide8-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-33066\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide8-2-1024x768.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide8-2-1024x768.jpg 1024w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide8-2-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide8-2-768x576.jpg 768w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide8-2-1536x1152.jpg 1536w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide8-2-624x468.jpg 624w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide8-2.jpg 1920w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide9-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-33067\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide9-2-1024x768.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide9-2-1024x768.jpg 1024w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide9-2-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide9-2-768x576.jpg 768w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide9-2-1536x1152.jpg 1536w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide9-2-624x468.jpg 624w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide9-2.jpg 1920w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide10-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-33068\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide10-1-1024x768.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide10-1-1024x768.jpg 1024w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide10-1-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide10-1-768x576.jpg 768w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide10-1-1536x1152.jpg 1536w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide10-1-624x468.jpg 624w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2022\/10\/Slide10-1.jpg 1920w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p>SOURCES:<\/p>\n<p><a href=\"https:\/\/www.sciencedirect.com\/science\/article\/abs\/pii\/S0304405X22000976\" target=\"_blank\" rel=\"noopener\">https:\/\/www.sciencedirect.com\/science\/article\/abs\/pii\/S0304405X22000976<\/a><\/p>\n<p><a href=\"https:\/\/www.theleadleft.com\/leveraged-loan-insight-analysis-4-11-2022\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.theleadleft.com\/leveraged-loan-insight-analysis-4-11-2022\/<\/a><\/p>\n<p><a href=\"https:\/\/www.spglobal.com\/marketintelligence\/en\/news-insights\/latest-news-headlines\/surging-demand-for-leveraged-loans-propels-dividend-payouts-to-record-pace-66753630\" target=\"_blank\" rel=\"noopener\">https:\/\/www.spglobal.com\/marketintelligence\/en\/news-insights\/latest-news-headlines\/surging-demand-for-leveraged-loans-propels-dividend-payouts-to-record-pace-66753630<\/a><\/p>\n<p><a href=\"https:\/\/www.moodys.com\/research\/Moodys-Weaker-covenants-in-recent-leveraged-loans-to-allow-for--PBC_1302298?cid=7QFRKQSZE021\" target=\"_blank\" rel=\"noopener\">https:\/\/www.moodys.com\/research\/Moodys-Weaker-covenants-in-recent-leveraged-loans-to-allow-for&#8211;PBC_1302298?cid=7QFRKQSZE021<\/a><\/p>\n<p><a href=\"https:\/\/www.lcdcomps.com\/lcd\/f\/article.html?aid=12491603\" target=\"_blank\" rel=\"noopener\">https:\/\/www.lcdcomps.com\/lcd\/f\/article.html?aid=12491603<\/a><\/p>\n<p><a href=\"https:\/\/jsf.pm-research.com\/content\/28\/2\/74\" target=\"_blank\" rel=\"noopener\">https:\/\/jsf.pm-research.com\/content\/28\/2\/74<\/a><\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-10-14\/ubs-sees-9-leveraged-loan-default-rate-as-fed-fights-inflation?sref=rWFqAg1Y\" target=\"_blank\" rel=\"noopener\">https:\/\/www.bloomberg.com\/news\/articles\/2022-10-14\/ubs-sees-9-leveraged-loan-default-rate-as-fed-fights-inflation?sref=rWFqAg1Y<\/a><\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-10-07\/the-party-s-over-data-show-risks-built-up-in-credit-markets?sref=rWFqAg1Y\" target=\"_blank\" rel=\"noopener\">https:\/\/www.bloomberg.com\/news\/articles\/2022-10-07\/the-party-s-over-data-show-risks-built-up-in-credit-markets?sref=rWFqAg1Y<\/a><\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-29\/more-pain-ahead-for-banks-as-investors-balk-at-risky-lbo-debt?srnd=fixed-income&amp;sref=rWFqAg1Y\" target=\"_blank\" rel=\"noopener\">https:\/\/www.bloomberg.com\/news\/articles\/2022-09-29\/more-pain-ahead-for-banks-as-investors-balk-at-risky-lbo-debt?srnd=fixed-income&amp;sref=rWFqAg1Y<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We&#8217;ve talked a lot about this being a Jenga economy and anything. The economy is now so fragile because of all [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":33069,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1713],"tags":[],"class_list":["post-33058","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-peek-beneath-the-skin-of-the-markets"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/33058","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/comments?post=33058"}],"version-history":[{"count":3,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/33058\/revisions"}],"predecessor-version":[{"id":33072,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/33058\/revisions\/33072"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media\/33069"}],"wp:attachment":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media?parent=33058"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/categories?post=33058"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/tags?post=33058"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}