Credit Crunch links
These are a number of links to financial indicators, which provide a guide to the depth of the credit crunch.
Ted spread
The TED spread is the difference between the interest rates on interbank loans and short-term U.S. government debt ("T-bills"). The TED spread is an indicator of perceived credit risk in the general economy.[1] This is because T-bills are considered risk-free while LIBOR reflects the credit risk of lending to commercial banks.
US dollar Libor
The London Interbank Offered Rate (or LIBOR, pronounced /ˈlaɪbɔr/) is a daily reference rate based on the interest rates at which banks borrow unsecured funds from banks in the London wholesale money market (or interbank market). It is roughly comparable to the U.S. Federal funds rate.
Treasury 3 month bills
Treasury securities are government bonds issued by the United States Department of the Treasury through the Bureau of the Public Debt.
Libor-OIS spread
The difference between the rate banks charge for loans in London relative to the overnight index swap rate, known as the Libor-OIS spread, the three-month Libor OIS spread, viewed as an indirect measure of funds availability in the money market An increase in the difference typically signals a decreased willingness to lend.
An overnight indexed swap (OIS) is an interest rate swap where the periodic floating rate of the swap is equal to the geometric average of an overnight index (i.e., a published interest rate) over every day of the payment period.
3 Month Ted Spread
The difference between what banks and the U.S. Treasury pay to borrow money for three months
Sat 20, December 2008 @ 14:24
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