Strap yourself in: the Fed's hawkish stance could create a rollercoaster 'A vast shift in the balance of the global bond supply and demand is under way'
The stress signal of the global credit system is flashing amber. The offshore dollar funding markets that lubricate world finance are facing an incipient squeeze.
The "Libor-OIS spread" - watched carefully by traders - has surged to levels seen during the onset of the Chinese currency crisis in early 2016, and during the onset of the Italian and Spanish funding crisis in late 2011.
The three-month rate for dollar Libor, used to price a vast nexus of financial contracts around the wor...