Indeed. I worked at a hedge fund that also traded bank debt. One of the loans we owned while I was there was offered at Libor + ~18% (yes, percent, not basis po

Indeed. I worked at a hedge fund that also traded bank debt. One of the loans we owned while I was there was offered at Libor + ~18% (yes, percent, not basis points), and the notional was a half billion pounds. The daily accrued interest on that loan paid my yearly salary twice over. This loan was also held in the same era that the article is regarding. The US dollar vs pound exchange rate was extremely volatile in that same period. That period resulted in lots of late night phone calls regarding wild PnL swings and what happened and why. I had never really paid much attention to FX rates until that period. But, when the daily question is why are we missing X millions of dollars, and the answer was due to a fall of the dollar vs the pound, I had to start paying attention. That year or so was the worst year of my professional life.