what with the current liquidity squeeze we are seeing traded short tenor swap/forwards trading at lower rates that those implied from different maturity cash deposit ratesfor example, the current 1m tenor jpy libor 6m swap is quoted at 73bps (each 1m forward is pretty flat at the current 1m cash rate) whereas the 6m cash rate is quoted at 100bpsSo, should I discount using the cash rate i.e. 100bps, or should I discount using the cash rate implied from the 1m tenor swap market i.e. 73bps or so??I appreciate that for swaps I should imply forwards using a curve generated using instruments of the same tenor, but what about general discounting??Any comments very welcome. Rgds,Jon

You should discount in a manner that's consistent with your funding...