Swerve down on the curve

Three months is a long time in financial markets. That’s roughly how long it has taken for a global liquidity flood to turn into its reverse - markets in which it’s hard to get even low-risk transactions done. And right now three months looks long in another sense: it is too long for lenders to commit themselves. Thanks to extensive support from central banks, overnight loan markets are now functioning. But reports from the three-month trenches are pretty grim. Interest rates on loans between b...