Ted Spread

外汇网2021-06-19 14:08:54 86

The price difference between three-month futures contracts for U.S. Treasuries and three-month contracts for Eurodollars having identical expiration months.

|||The Ted spad can be used as an indicator of credit risk. This is because U.S. T-bills are considered risk free while the rate associated with the Eurodollar futures is thought to reflect the credit ratings of corporate borrowers. As the Ted spad increases, default risk is considered to be increasing, and investors will have a pference for safe investments. As the spad decreases, the default risk is considered to be decreasing.

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