It’s becoming harder to ignore the spike in the London Interbank Offered Rate.This key benchmark rate for trillions of dollars of debt has risen to the highest level since 2009, largely because of new money-market rules that go into effect in October. Regardless of the cause or permanence of the rate increase, broader effects can already be seen throughout markets, and the Federal Reserve should take greater notice. For example, a Bloomberg News article on Thursday highlighted how companies are opting to finance themselves with longer-dated bonds rather than commercial paper borrowings, which are pegged to Libor. ... (full story)