LC loans is linked to fed fund rate I believe.
Journalists seem to be on fed watch, don't seem to get that: while the balance sheet lenders may see slight effect due to FFR move, LC
(marketplace) not exposed. Can do mental gymnastics and say, sure, it's in-directly exposed in xyz ways, but, no real direct correlation.
What "link" do you believe LC loans have with FFR? I can tell you this: investor demand for LC loans is not going down, it's going up...
Don't think the prospect of 25 bips increase on deposit rates, sometime maybe in the future, is going to tamp that demand down at all.
*shrug*