Meanwhile In "Koolaid Ist Verboten" TED-Spread Land...

Tyler Durden's picture

In the words of Bullet Tooth Tony, "Bonjour"

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ZeroPower's picture

Fall of '08 it hit just above 450 i believe.

We're getting there!


Oh and Libor-OIS spread worth to look at as well

Freebird's picture

I hate those f-----' northern fairies!!

fl3tch3r's picture

a bit pedantic but -

Barry the basher: I hate those fu---- northern monkeys

Theivin' Scouser: I 'ate those foo--- southern fairies


Just wish I could remember Bullet tooth Tony's desert eagle speech...

Freebird's picture

Is that you Bob?

You got me - selective memory & poetic license.

Yup Tony's speech, something about replicas, the real thing, shrinking balls, mincers & f--- off so I can finish my beer, no?

JiangxiDad's picture

If the FDIC can insure all US deposits,i don't see why it can't insure deposits world-wide.  For that matter, we could approach alien civilizations to insure their deposits as a peace offering.

Cognitive Dissonance's picture

How do you re-posses the alien space ship if you can catch it or shoot it down?

Just askin'. :>)

SayTabserb's picture

The principle is from maritime law: libel in rem. The U.S. Marshal seizes the flying saucer while it's in port.  Interstellar carrying charges are astronomical (sorry) so the aliens will pay up immediately to get the saucer back in galactic commerce. I've given this some thought.

Cognitive Dissonance's picture

Thank God someone's thinking while the Titanic goes down. Keep up the good work and take some pictures of their antigravity device with your cell phone if you can. We can sell them to the government since they claim not to know anything about this.

SayTabserb's picture

I'll probably have the Marshal do that because of ray-gun risk. Given govt. cutbacks, the Marshal may have to use an old Kodak Brownie, but we'll get the highest resolution we can. Thanks for supporting your country in these difficult times.

carbonmutant's picture

You guys are over thinking this.

One of the prerequisites for global commerce between sovereign powers is to have them make a good faith deposit (Alien Gold from their vast reserves) in one of our Central Banks to facilitate future commerce.

There may of course be some counterparty risk considering or past history of handling money...

wagefreedom's picture

you would focus on lending the spaceship more $$ in that case.

wagefreedom's picture

you would focus on lending the spaceship more $$ in that case.

SayTabserb's picture

My guess is that the flying saucer would be considered too big to fail and would be bailed out.  I need to read the draft FINREG, but alien lobbying has been ferocious.

truont's picture

Spread 'em, Ted!

amarshall's picture

for those that need a brushup like I did.

Joe Sixpack's picture

The TED Sperad is getting to my head.

I think I'll take two aspirin and go back to bed.

Don't worry, it'll be handled by the FED.

Then everyone'll be safely in the red.

Jim in MN's picture

As the driver said when he hit the tree. "Ooooooooooosh--"

Al Huxley's picture

Credit guys are so boring - come on, join the party, drink the koolaid, it'll be fun, really!

fuggetaboutit's picture

probably not a big deal that germany closed down on big volume with breadth 2x to 1x, probably spurred by the big slump in PMI data - althought, obviously that does nothing to alter the view that a renewed global credit crisis will have no impact on any economies, anywhere

Coldcall's picture


Apologies for this newbie question: do individual banks pay different rates depending on their risk profile, or is the interbank lending rate always the same for all banks?

If its different then is there a way to see which bansk are bing charged the most interest on short term funds?



Hansel's picture

Banks paying different rates was a big deal in 2008, which is why central banks instituted programs to effectively mask the differences and loan taxpayer money to all banks at very low rates.  Also, LIBOR is a survey, and each contributor bank submits its rate.  LIBOR is a benchmark and not a hard rate.  Now most banks are borrowing straight from their central banks, which, as was intended when central banks started heavily intervening, brought down the spread and muddied the waters between private and sovereign rates. 

ZeroPower's picture

Derived from a benchmark of many yes but when pricing bonds, swaps, CDSs etc, most of those are tied to a hard LIBOR rate

Cognitive Dissonance's picture

I wonder if eBay will ever allow people to sell old used sovereign debt that was found under the comic book collection in the attic?

Or maybe allow the, the Treasury to sell new debt on eBay. Dude, what's the buy-it-now price on those 10 years?

Davilis's picture

TED is dead.  Mr Swap said so.

old_turk's picture

Adieu.  Is more like it, if you want trust, go talk to the Squid.


BTW, The Squid will never, ever, 'settle'.  Do you have any idea what that would do to the bonus pool?


Also, since GS only intermediates, please tell your damn Squidlets to quit dropping by offering up their latest firm directive fueled 'transaction' for me to contemplate!

Most of their 'transactions' are for maroons and drug addled zombies (head-up-their-butt European bankers qualify), in other words, don't call me, I'll call you.


Peanut heads.

Pat Shuff's picture


 The TED spread peaked at around 450 in late '08, about 1300% higher than today's 35.


As a real time temperature gauge of fear and loathing today's reading is in the candy thermometer not blast furnace range. These dramatic selective renderings don't augment but rather diminish credibility. It may feed the narrative but you can't eat narrative nor wear, heat or shelter with it.



mookid's picture

I know you can trade the TED with 3 month T-Bills and 3 month Eurodollars, but can you trade the Libor-OIS spread?

ZeroPower's picture

Im not aware of any tradeable security that tracks said spread, but just how you can create a synthetic CDS with bonds and USTs, for this spread you can pick up some short dur bonds and hedge with equity on the side.

Mind you youre not just playing to the overall health of an individual stock, in this case a banking stock. Youd be playing the systemic risk side here since inevitably not just 1 bank but all banks are affected by the widening of the spread.

surfer's picture

If you really want to look at something exciting have a look at CHF implied deposits rates from FX forwards FXFA on Bloomy. Funding cris nah pls move on nothing to see here.

johngaltfla's picture

Or if you want a chuckle, check out CDS on Ambac....