Banks Brace for Funding Stress

The video discusses the euro dollar cross currency basis, highlighting its recent widening due to stress in the market, particularly linked to Deutsche Bank. It compares current levels to past financial crises and explains how central banks are better prepared now. The video also examines funding levels, market reactions, and the impact of Japan data, noting a global scramble for dollar funding. It concludes with an analysis of Sterling's decline, influenced by Brexit concerns and investor sentiment.

What does the euro dollar cross currency basis indicate about the market?

How do the current levels of the euro dollar cross currency basis compare to those during the global financial crisis and the European sovereign debt crisis?

What role do central banks play in the current market conditions compared to 2008?

What does a spike in three-month lending money signify in the context of interbank lending?

How has investor sentiment regarding Brexit affected the value of the pound?