SOR
Difference between SIBOR and SOR
Quoting from the SIBOR wikipedia entry,
SIBOR stands for Singapore Interbank Offered Rate and is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the Singapore wholesale money market (or interbank market).
Fed cuts rate to virtually zero
The Feds cut the federal funds rate from 1.0 percent to a range of zero to 0.25 percent. In addition to that, they continue to apply “quantitative easing” which “effectively means printing money”. The effect of money printing is already being felt with the US dollar easing against other currencies.
Sibor and SOR hits new low
At the closing of this week, the 3 month and 6 month SOR fell to an eye-popping 0.68% and 0.74% respectively, the lowest levels since i started tracking, while the 3 month Sibor tumbled to 0.81%. The fall in the 6 month SOR is especially noteworthy, as it convincingly fell below 1%. This could possibly be taken as a signal that SOR will remain subdued for the next 6 months.
Sibor and SOR holds below 0.9%
Sibor and SOR rates seem to be consolidating and staying low this week, both (3-month rates) maintaining below 0.9% consecutively for the last 3 days. There is perhaps a lack of driver, with Libor rates (3m USD) hovering around 2.15% – 2.30% and USD/SGD exchange rates holding at 1.53 for now. News of impending Fed Funds Rate cut, possibly to 0.5%, might just help to keep Sibor and SOR below 1% for the months ahead.
SIBOR and SOR touches lows
This week, Sibor fell to 0.89 percent, not far from the all-time low of 0.69 percent recorded on Nov 21, 2003. The 3m and 6m SOR touched lows of 0.78 and 0.94 respectively. Coupled with the expected weakness in the currency, the interest rates here will likely stay low for some time as anticipated. Good news for SIBOR or SOR pegged mortgagers.
Singapore not spared from the inevitable
Looks like it started to hit home in a big way – DBS cuts 900 jobs. Earlier on Chartered Semiconductor implemented temporary salary reductions of 5-20 percent.