#finance #ted-spread
The long term average of the TED has been 30 basis points with a maximum of 50 bps. During 2007, the
subprime mortgage crisis ballooned the TED spread to a region of 150–200 bps. On September 17, 2008, the TED spread exceeded 300 bps, breaking the previous record set after the
Black Monday crash of 1987.
[4] Some higher readings for the spread were due to inability to obtain accurate LIBOR rates in the absence of a liquid unsecured lending market.
[5] On October 10, 2008, the TED spread reached another new high of 457 basis points. In October 2013, due to worries regarding a potential default on US debt, the 1 month TED went negative for the first time since it started being tracked
If you want to change selection, open document below and click on "Move attachment"
TED spread - Wikipedia, the free encyclopediaate of interest, or accept lower returns on safe investments such as T-bills. When the risk of bank defaults is considered to be decreasing, the TED spread decreases.[3]
Historical levels[edit]
This section requires expansion. (November 2008)
<span>The long term average of the TED has been 30 basis points with a maximum of 50 bps. During 2007, the subprime mortgage crisis ballooned the TED spread to a region of 150–200 bps. On September 17, 2008, the TED spread exceeded 300 bps, breaking the previous record set after the Black Monday crash of 1987.[4] Some higher readings for the spread were due to inability to obtain accurate LIBOR rates in the absence of a liquid unsecured lending market.[5] On October 10, 2008, the TED spread reached another new high of 457 basis points. In October 2013, due to worries regarding a potential default on US debt, the 1 month TED went negative for the first time since it started being tracked.[6][7]
See also[edit]
LIBOR-OIS spreadOvernight indexed swapTreasury BillTreasury security
References[edit]
^ http://www.atimes.com/atimes/Global_Economy/LK25Dj01.html^ Bloomberg.com F Summary
status | not read | | reprioritisations | |
---|
last reprioritisation on | | | suggested re-reading day | |
---|
started reading on | | | finished reading on | |
---|
Details