TED spread

Definition

The difference between the rate for Treasury Bills and the rate for Eurodollar Bills. The resulting price discrepancy is an indicator of credit risk. An increasing TED spread is thought to indicate increasing risk, while a decreasing TED spread is thought to indicate decreasing risk.

Use TED spread in a sentence

The difference between two certain types of bills was determined by the ted spread and I was really happy to know that.

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As an informed borrower I will wait until the TED spread decreases so that the money I borrow will have a lower interest rate and will improve my ROI.

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After following the Ted Spread and noticing it continued to increase, they were concerned about risk with the Euro, and how that might impact business.

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