Explain how the information content of this figure can be used to inform (i) policymakers and (ii) practitioners. If you were an investor, what concerns would you have about creditand liquidity-risk across time?

Describe Figure (hint: you can start by defining the derivative that is depicted and build from there). Explain how the information content of this figure can be used to inform: (i) policymakers and (ii) practitioners. If you were an investor, what concerns would you have about credit- and liquidity-risk across time?
Figure 3: Euribor and OIS rates and spreads

3M EURIBOR and OIS rates _ .
100i
0
200-
150 100-
50
3M and 12M EURIBOR-OIS spread

■ 0 , i , , , . , , Aug 2007 Apr-2008 Dec-2008 Aug-2009 Apr-2010 Dec-2010 Sep-2011 May-2012 Jan-2013

Note: The top panel reports the 3-month Euribor (light gray) and the 3-month OIS (dark gray). The bottom panel reports the spread between the Euribor and the OIS rates across two maturities: 3-month maturity (dark gray) and 12-month maturity (light gray). The vertical axis reports annualized interest rates in basis points

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Approximately 250 words