TED spread
From Wikipedia, the free encyclopedia
The TED spread is the difference between the interest rate for U.S. Treasuries and Eurodollars as represented by the London Inter Bank Offered Rate (LIBOR). The TED spread is a measure of liquidity and shows the flow of dollars between the U.S. and Europe.
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The value of the TED spread fluctuates over time but is often between 10 and 50 basis points (0.1% and 0.5%). A rising TED spread often fortells of a downturn in the U.S. stock market as liquidity is withdrawn.
