In what range of values has the spread fluctuated

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The TED spread

The text described the fluctuations in the Ted spread that occurred during the financial crisis. Do an internet search and find the recent history of the Ted spread. You can find this information easily from various sources.

a. Consult Figure 9-3 to compare the current value of the Ted spread to its value before and during the financial crisis. How does the current value of the Ted spread compare to its highest values during the crisis? How does the current value of the Ted spread compare to its value at the beginning of 2007? (Note that the Ted spread is often quoted in basis points. One hundred basis points equals one percentage point.)

b. Has the Ted spread been relatively stable in recent months? In what range of values has the spread fluctuated?

c. What do you conclude about the willingness of banks to lend to one another now as compared to the beginning of 2007? as compared to the fall of 2008? Explain.

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Reference no: EM131133033

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