Best looking weekly chart, page-1302

Iceberg, dead ahead, Captain?

Not just banks facing huge risks. There is 100s of Trillions ofderivatives in debt that must be converted from LIBOR to SOFR by the end of June. Balance sheets will be blowing up everywhere when debt has to be refinanced at 7+% from less than 4%.The zero rate to current and projected rates impact will be a huge headwind fo reveryone trying to roll this debt.

https://www.federalreserve.gov/newsevents/pressreleases/bcreg20221216a.htm

The Federal Reserve Board on Friday adopted a final rule that implements the Adjustable Interest Rate (LIBOR) Act by identifying benchmark rates based on SOFR (Secured Overnight Financing Rate) that will replace LIBOR in certain financial contracts after June 30, 2023. The final rule is substantially similar to the proposal with certain clarifying changes made in response to comments.LIBOR, formerly known as the London Interbank Offered Rate, was the dominant benchmark rate used in financial contracts for decades. However, it was fragile and subject to manipulation, and U.S. dollar LIBOR panels will end after June 30,2023.