LIQUIDITY NEWS. THE TED SPREAD AT ONE-AND-A-HALF MONTH LOWS
[Latest Endogenous Liquidity Index: -60.9%; Latest Global Dollar Liquidity measure: +37.7%]
The spot TED spread, as measured with data from the Fed's daily "Selected Interest Rates", trades at 268 bps (a level not seen since September 16, when Lehman Brothers failed). Now, if only the good money market news would translate into equally good credit markets news. This, alas, is still not the case: the Moody's Baa spread trades at 550 bps, close to its recent highs.