Thursday, July 28, 2016

What Does The Sudden Spike 
In The TED-Spread Really Mean?
In the past, the difference between the LIBOR interest rate & the 3-month U.S. Treasury Note yield (the so-called TED Spread) has been an indicator of funding stress & heightened systemic risk .. today there may be a different factor for the move wider: "The move wider in funding indicators happens to do with a change in the regulatory environment instead of indicating some unseen liquidity threat.
With central bank intervention having broken all conventional signalling pathways, including equities, corporate bonds and Treasuries, there will no longer be any reliable sources hinting at fundamental risk in the market,
certainly for the short-term and perhaps over an indefinite amount of time .. We can only hope that central banks don't make a mess of things in the near future .. it will also be impossible to gauge if there is something truly broken with the market."
LINK HERE to the article

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