Money Market rates continue to tumble across Europe

purch

That would explain short rates falling and long rates rising

Yikes !!!

That Yield curve will start to look like Alp D'Huez soon :eek:

inspector_monkfish

Generali wrote: »

AIUI, 'green shoots' are starting to focus minds on the possibility of inflation and thus rising interest rates in future.

That would explain short rates falling and long rates rising.

PS Who the hell wants to enter into a 60 year swap? The chances are you'll be dead before maturity.

short dates are falling, because the banks arent lending to each other.
they are hoarding it, (just incase anything really nasty happens again in the money markets) until the last moment when they are forced to dump it off their books by lending it overnight
and what they can't dump, they are stashing with the Central Banks at their specified rate (which are all very low)

Pal

Pension schemes and lifetime annuity providers would be very interested in investing in 60 year swaps.

inspector_monkfish

Pal wrote: »

Pension schemes and lifetime annuity providers would be very interested in investing in 60 year swaps.

i dont think alot happens that far out !;)
to be fair, at the moment, not alot happens from 1week outwards.....

Generali

inspector_monkfish wrote: »

i dont think alot happens that far out !;)
to be fair, at the moment, not alot happens from 1week outwards.....

That's my experience. Many years ago when I was looking after swaps in ops you'd get some corporate stuff up to a year, especially on the currency side.

If you go beyond 6 months or perhaps a year it's expensive and a bit pointless.

inspector_monkfish

Generali wrote: »

That's my experience. Many years ago when I was looking after swaps in ops you'd get some corporate stuff up to a year, especially on the currency side.

If you go beyond 6 months or perhaps a year it's expensive and a bit pointless.

...and all a bit of a wild guesstimate in the current climate!!

michaels

Thanks for this - nice profit to be made offering 5yr fixes at 4.99% on 60% ltv.

On a 100k mortgage I make that a profit of £2k pa, I would have thought at 60% or below ltv you would not have to set aside much capital (for example 5% would give a return of 40% on capital!!!) and the arrangement fees now more thna cover the admin so pretty much pure profit. Don't have the figures offhand but I bet margins were a lot tighter 2 years ago even for 90+% mortgages with appreciable capital risk.

I wonder when (if) we will see fairly priced mortgages again. Competiton no longer seems to be driving the cosy olligopaly (sp) and given the decision to allow LBG to go ahead I can't see the banks being to worried about the risk of an OFT investigation...

inspector_monkfish wrote: »

here you go....



GBP SWAPS


2 YRS 2.1500-2.1100
3 YRS 2.5900-2.5500
4 YRS 2.9075-2.8575
5 YRS 3.1275-3.0775
6 YRS 3.2950-3.2450
7 YRS 3.4275-3.3775
8 YRS 3.5325-3.4825
9 YRS 3.6225-3.5725
10YRS 3.6950-3.6450
12YRS 3.8475-3.7775
15YRS 3.9925-3.9025
20YRS 4.0150-3.8850
25YRS 3.9050-3.7750
30YRS 3.8425-3.7125
40YRS 3.8525-3.6825
50YRS 3.9175-3.7475
60YRS 3.9875-3.8175

Harry_Powell

I'm afraid I didn't understand too much in this thread but would like to know if the experts thought LIBOR rates, and hence mortgage interest rates would be going up any time soon?

We (girlfriend and I) are keeping our eye on the housing market and want to buy at a low price, but also arrange a fixed mortgage for long term security. Shades of 'having cake and eating it', I know

inspector_monkfish

Harry_Powell wrote: »

I'm afraid I didn't understand too much in this thread but would like to know if the experts thought LIBOR rates, and hence mortgage interest rates would be going up any time soon?

We (girlfriend and I) are keeping our eye on the housing market and want to buy at a low price, but also arrange a fixed mortgage for long term security. Shades of 'having cake and eating it', I know

LIBORs are not going up anytime soon

Mortgage rates - no idea !!

Generali

inspector_monkfish wrote: »

...and all a bit of a wild guesstimate in the current climate!!

Well precisely. Why swap to a fixed interest rate for 60 years when (apparently) we'll all be dead of swine fever by January.