Sunday, March 15, 2009

Weekly Credit Market Overview 15 Mar

Click title above for "Ted Spread" chart from Bloomberg

What we see is that despite a large decline in this credit spread from the crises of Fall 2008, the spread is still trading near 112 basis points. In the previous bull market from 2003-2007, this spread averaged 27 basis points. If this were to begin to incline again, it would signal a resuming of credit fears in the market.