The TED spread is the difference between the LIBOR interest rate and the three month T-bill rate. Usually the TED spread is less than 0.5%. The higher the spread, the greater the perceived credit risks. The spread rght now is 4.23%.
Showing posts with label TEDspread. Show all posts
Showing posts with label TEDspread. Show all posts
Friday, October 10, 2008
TED Spead At Record
Another, indicator to watch, in addition to M1 money supply, for an indication of a subsiding of fear, is the TED spread.
The TED spread is the difference between the LIBOR interest rate and the three month T-bill rate. Usually the TED spread is less than 0.5%. The higher the spread, the greater the perceived credit risks. The spread rght now is 4.23%.
The TED spread is the difference between the LIBOR interest rate and the three month T-bill rate. Usually the TED spread is less than 0.5%. The higher the spread, the greater the perceived credit risks. The spread rght now is 4.23%.
Thursday, September 11, 2008
EPJ Dictionary: TED Spread
TED stands for Treasury Eurodollar.
The TED spread measures the difference between the interest rate of the US Treasury 3-month T-bills and the 3-month LIBOR: London Interbank Offered Rate which is the Eurodollar interest rate at which banks lend to each other. When this gap is large, banks are less willing to lend to one another at risk-free rates, and thus it is an indicator of how risky banks consider the environment to be.
The TED spread measures the difference between the interest rate of the US Treasury 3-month T-bills and the 3-month LIBOR: London Interbank Offered Rate which is the Eurodollar interest rate at which banks lend to each other. When this gap is large, banks are less willing to lend to one another at risk-free rates, and thus it is an indicator of how risky banks consider the environment to be.
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