Celebrating The TED Spread

This article is more than 12 years old.

The Planet Money folks are celebrating the TED Spread's brief dip below 1.00 today.

So, what's the TED Spread? It's not a fancy dip or a warm blanket, but...

...the difference between the three-month LIBOR (the London interbank offered rate, set each morning for banks borrowing from each other) and the return on a three-month Treasury bill.

Basically, it's a measurement of anxiety among banks. The lower, the better. (The Spread dipped below 4 in mid-October 2008.)

This program aired on January 13, 2009. The audio for this program is not available.