TED Spread update

The TED Spread measures the difference between the 3 month LIBOR and 3 month T-bill.  The TED Spread is considered ‘normal’ when it is below 50 basis points. Here is a multi-year chart of the TED Spread going back to 2006 (source: Bloomberg)

TED

The TED spread increased from the mid-teens to 50 basis points in the second quarter of 2010, and has since lowered to the mid-30s – within our ‘normal’ range.  Can you guess when Lehman Brothers filed bankruptcy?  The TED Spread spiked to over 400 basis points that week.

  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Reddit
  • Slashdot
  • StumbleUpon
  • email
  • LinkedIn
  • RSS
  • Suggest to Techmeme via Twitter
  • Twitter