1 Month US Dollar USD LIBOR Interest Rate
The Federal Reserve hiked US interest rates by another 25 basis points yesterday in its third upward move since the financial crisis. By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines Comments are welcome while open. We reserve the right to close comments at any time.
The company has said that the vast majority of the convertible bondholders are in agreement with the terms and but for internal compliance reasons are not permitted to enter into a lock up agreement. This means Premier may need to take the terms to a vote in order to secure a 75pc approval.
The combination of artificially supported, record high US equities and rising geopolitical tension should be a worry for the SNB as any capitulation on the equity front is likely to invite massive safe haven Franc demand the central bank will be unable to offset, irrespective of the central bank’s commitment to negative rate policy as reflected in this latest policy decision. For now, the SNB is hoping global sentiment will remain artificially elevated and the ECB will take on a more hawkish policy approach in the months ahead. But the key focus for this market going forward will unquestionably be on the performance in US equities given the influence on broader sentiment. Any signs of intensification to the downside will likely invite a pickup in Franc demand and unwanted downside pressure on EURCHF. Certainly the message from the Fed in which it refused to back away from forward guidance will only make the SNB’s job that much tougher.