How the Rising Libor Rate May Impact the Fed and Bonds

The video discusses the potential impact of Federal Reserve rate hikes and the rising Libor rate, which is influenced by money market reforms. These changes affect credit markets, borrowing costs, and adjustable mortgages. Despite concerns, the changes are seen as incremental and not indicative of market stress. Experts predict that interest rates, when they rise, may do so rapidly, impacting both short-term and long-term borrowing. The discussion includes varying opinions on future interest rate movements and their implications for the market.

What factors are influencing the rise in the Libor rate according to the text?

How does the increase in borrowing costs affect individual credit borrowers?

What is the potential impact of a persistent rise in borrowing costs on the credit market?

Discuss the implications of the Fed's intention to raise rates on the overall market.

What did Alan Greenspan suggest about the movement of interest rates?