A comparison of the information in the LIBOR and CMT term structures of interest rates

B-Tier
Journal: Journal of Banking & Finance
Year: 2015
Volume: 54
Issue: C
Pages: 239-253

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We investigate the information contained in the London Interbank Offered Rate (LIBOR) and the U.S. Constant Maturity Treasury (CMT) term structure of interest rates and report three novel findings. First, we document that the information contained in term structures are significantly different from one another. Second, we provide evidence of a significant change in the nature of this difference as the financial crisis began. Third, we find that the significant changes in the information content of CMT and LIBOR are consistent with significant shocks to credit default swap rates and tenor swap rates.

Technical Details

RePEc Handle
repec:eee:jbfina:v:54:y:2015:i:c:p:239-253
Journal Field
Finance
Author Count
3
Added to Database
2026-01-24