Here is the TED Spread from Bloomberg. The TED spread hit a record 4.13 this morning. This is far above the highs reached during the previous waves of the credit crisis.
Note: the TED spread is the difference between the LIBOR interest rate and the three month T-bill. Usually the TED spread is less than 0.5%. The higher the spread, the greater the perceived credit risks (compared to “risk free” treasuries).
From Bloomberg: Libor Dollar Rate Jumps to Highest in Year; Credit Stays Frozen
The cost of borrowing in dollars for three months in London soared to the highest level this year as coordinated interest-rate reductions worldwide failed to revive lending among banks for any longer than a day.
…
The London interbank offered rate, or Libor, for three-month loans rose to 4.75 percent today, the highest level since Dec. 28. The Libor-OIS spread, a measure of cash scarcity, widened to a record.
The credit markets are still in severe distress.
Courtesy of Calculated Risk
Now that I’ve bookmarked this blog and read it on a regular basis, I’m spending most of my time trying to decipher all the business jargon. This is a steep learning curve, but I’ll get there :)
ritto-
I try to keep the business jargon to a minimum, but certain concepts can only be expressed in the context of business. Should you have any questions, leave a comment and I will do my best to revisit your comment and put it in lay terms. There are no dumb questions, so feel free to ask.