Comments on: TED Spread – What Is It?

By: Aaron

Aaron — Wed, 09 Dec 2009 15:55:31 +0000

I am doing my dissertation on libor bond spread in the UK i was just wondering if there is a uk version of TED spread. I know i can get the data 3 month T rate and the LIBOR 3 month just not sure what it would be called

By: Roger

Roger — Fri, 07 Aug 2009 19:01:54 +0000

Interesting stuff. I’ve heard the term TED spread being tossed around, but I hadn’t given it too much thought. It looks, from the chart you presented, that banks have been pretty suspicious of each other since at least mid to late 2007. (At least, if the TED can really be used as an approximation of how much banks trust each other.) And with good reason, as it turned out.

Nice article on an interesting financial concept.
Roger´s last blog ..Reading Online Stock Data

By: cherilynn stone

cherilynn stone — Tue, 04 Aug 2009 07:25:46 +0000

an informative post!
cherilynn stone´s last blog ..A Spiritual View On the Iraqi Dinar

By: MyLifeROI

MyLifeROI — Tue, 04 Aug 2009 03:49:29 +0000

@The Weakonomist,

Exactly. I think the quote I used in the article sums up what they are thinking right now: “All models are wrong, but some are useful.”

They are starting to come to the realization that their risk assessment models are wrong. And they knew that, but they still found them useful. I just think they may be at a point where they are wondering if they are wrong to the core of the model. And that’s a scary thought for them.

Yeah, TED spread is definitely a good leading indicator to the stock market, and even economy. Makes sense, right? Inter-bank liquidity goes down, stock market has a good chance of going down…

MLR

By: The Weakonomist

The Weakonomist — Mon, 03 Aug 2009 13:07:10 +0000

Being a bank employee I can say one reason (there are many) credit limits have been slashed is the banks are somewhat unsure of the accuracy of their credit models. TED spread is new to me, I like it.
The Weakonomist´s last blog ..Two Short Announcements