December 19, 2007
$500 Billion Injection Narrows TED Spread Slightly
Money Market Rates Tumble; Central Banks Inject Funds
“The ECB loaned 348.6 billion euros ($501.5 billion) for two weeks at 4.21 percent today … The TED spread, or difference between what the U.S. government and banks pay for three-month loans, narrowed for a fifth day to 189 basis points, indicating an increased willingness among banks to lend. The spread was 35 basis points at the start of the year.”
I finally found the symbol for the TED spread, it’s .TEDSP [Index]
Related: SLIQ is Pretty Slick
December 26th, 2007 at 1:46 am
I found this page quite by accident, and I think it is rather good. I am a semi-retired FX options/chart specialist from a major American bank, with a particular interest these days in the deteriorating credit situation. In my view, the key thing to watch (and which seems to be covered all too infrequently - Bloomberg television ceasing coverage recently) is the TED Spread. I urge you, as one of the few pages covering it, to keep talking about it particularly if it takes out the recent highs near +220. Thank you.
December 26th, 2007 at 7:50 am
Gerry: Yes, I’m keeping an eye on the TED Spread but I’m also watching shorter term measures of liquidity (O/N, 7-day, 15-day, 30-day Libor, Euribor, Dollar Libor, etc.) which have been improving of late.
February 12th, 2008 at 1:06 am
My understanding is that you can no longer trade the TED Spread like you used to. Is that true?