TED spread


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TED spread

Difference between US Treasury bill rate and Eurodollar rate; used by some traders as a measure of investor/trader anxiety or credit quality.

Ted Spread

A measure of credit risk, calculated by subtracting the price of three-month U.S. Treasury securities and three-month eurodollar contracts. These contracts must have the same expiration month. Because Treasury securities are risk-free and eurodollar contracts are not, an increased Ted spread indicates a greater likelihood of default.

TED spread

The price spread that occurs when opposing transactions are made in Treasury bill futures and Eurodollar futures as, for example, a long position in Treasury bill futures coupled with a short position in Eurodollar futures. A long spread that anticipates the price spread between the two contracts will widen could involve buying a T-bill future and simultaneously selling a Eurodollar future. A short spread in which a Eurodollar future is purchased and a T-bill future is sold short would anticipate a narrowing of the price spread.
References in periodicals archive ?
Only five members of this year's 24-strong field fit the trend but Ted Spread, once a Group 3 winner on the Flat for Mark Tompkins, plainly does.
Paul Nicholls, trainer of Ted Spread "He won nicely at Taunton but needs to improve again.
###earnings per share, TED spread,###Logit mode###VSTOXX index in order to
Specifically, for credit conditions, we use the EBP, the TED spread, and the survey-based measure of bank lending conditions.
CBOE Vix shed 5 per cent while the Ted Spread was down 14 per cent.
Ted Spread could be a very well-handicapped horse but the value for the Imperial Cup lies with Nampour.
Ted Spread was the winner of the Chester Vase on the flat in 2010 when trained by Mark Tompkins and is now in the care of Champion trainer Paul Nicholls.
Ted Spread should be hard to beat in the Delta Company 40 Commando Royal Marines Handicap Hurdle at Taunton.
Ted Spread should also carry on the good work in the Delta Company 40 Commando Royal Marines Handicap Hurdle at Taunton.
The Mark Johnston-trained Corsica predictably set a generous gallop in his role as pacemaker to Rewilding, with Ted Spread and Total Command second and third a mile from home.
6-4 Rewilding, 6-1 Arctic Cosmos, Midas Touch and Snow Fairy, 7-1 Dandino, 8-1 Joshua Tree, 16-1 Ted Spread, 33-1 Theology and Total Command, 50-1 Corsica.
Chart I shows the TED spread which is the difference between 3 month London Interbank Borrowing Rate (LIBOR) and the 3 month Treasury Bill rate from January 2007 through August 2008.