Joined Dec 4, 2012
319 Blog Posts

TED Spread Versus CDS

I received an email from a good friend of mine about how Credit Default Swaps (CDS) levels are rising. Yesterday they rose sharply as markets struggled. So


So on the one hand CDS is rising which shows a risk off attitude. Meanwhile the TED Spread is falling since the beginning of the year, 45 to 33. This drop is similar to what happened in early 2012 after a tough 2011. 2012 ended up being a decent year. Pay attention to the TED Spread as we move forward for clues that we might be through the worst of the pain.

TED Spread

The chart above is monthly so click on it for more granularity.

If you enjoy the content at iBankCoin, please follow us on Twitter