by Bill McBride on 9/24/2008 09:39:00 AM
Wednesday, September 24, 2008
Here is the TED Spread from Bloomberg. The TED spread has increased to 3.02% (after falling to just over 2.5% yesterday). This suggests the credit markets are still in "credit hell" as reader BR put it this morning.
Most of the increase in the TED spread is because the three month T-bill is trading back down to 0.47%.
Note: the TED spread is the difference between the three month T-bill and the LIBOR interest rate. Usually the TED spread is less than 0.5%. The higher the spread, the greater the perceived credit risks (compared to "risk free" treasuries).