What Is the TEd Spread and What Type of Risk

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The Answer is The TEd spread is the difference between a libor rate and the uS T-Bill rate of matching maturity. It is an indicator of perceived credit risk in the general economy. In particular, because sovereign debt instruments are typically the benchmark for the lowest default risk instruments in a given market, and loans between banks (often at libor) have some counterparty risk, the TEd spread is considered to at least in part reflect default (or coun-terparty) risk in the banking sector.

What Is the TEd Spread and What Type of Risk

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What Is the TEd Spread and What Type of Risk

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