Incredibly difficult to ignore today is the little blurb citing the "Editor's Blog" on LegalWeek in the newly discovered (for me) "Square Mile Law" blog on a new trend in UK lending. Specifically, lending under the LIBOR base. Alarmed? At the very least it should be interesting to the intellectually curious Going Private reader (as redundant as that term may be).
The data shows that average lending by UK banks to non-banking institutions in April dropped to 5.24%, against the then-base rate of 5.25%. The rate was even further under LIBOR, the wholesale cost of money between the banks themselves and traditionally a good deal cheaper than any corporate borrower would get, a full 34 basis points below, as it happens.