Thursday
Jun172010
TED Spread Sees Largest Decline Since March
Thursday, June 17, 2010 at 12:31PM For those unfamiliar with the indicator, the TED spread measures the difference between the three-month T-bill interest rate and three-month LIBOR. When the spread is high it is indicative of a higher level of perceived risk in the credit markets as banks increase the rate at which they are willing to lend to each other. After hitting a 52-week high last week, the TED spread has seen its largest pullback in terms of basis points since March. Granted, it's only four basis points, but you have to start somewhere.
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Reader Comments (2)
I think it might be more helpful to show us a longer term picture of the TED spread so we can see how now compares to the fall of '08. Pardon the pun. Many thanks.
Mike
I agree with Mike. The recent past, which he alludes to, when it neared 500 bps, was quite frightening. What has been the daily spread since this 6/7/2010 ending chart? Marianne