| http://www.w3.org/ns/prov#value | - Put differently, financial institutions' cost of funding, typically based on the London Interbank Offered Rate (LIBOR), should be higher than that of the sovereign given that banks are not similarly rated AAA.Now there are many interpretations of why this phenomenon is occurring [1, 2, 3], but the most obvious one is that the markets do not believe Treasuries are risk free.
|
