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Treasury/EuroDollar (TED) Spread
TED Spread
The yield differential between Treasury bill and Eurodollar futures contracts expiring at the same time. Because the Treasury rate is considered to be default- free while the Eurodollar rate reflects the credit standing of corporate borrowers, a wide spread suggests investors/lenders have a strong preference for safety. See Basis Rate Swap, Credit Risk (4). See also Bundle, Treasury/EuroDollar (TED) Spread Swap.
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