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Saturday, February 14, 2009

TED spread has come down

We may well have passed the storm eye and Q4 2008 may well be the worst quarter in this cycle. But I don't see the light at the end of the tunnel. The recovery is not in sight and it will be slow and gradual, if any.

1-year Ted spread:




3-year Ted spread:


(click to enlarge; source: Bloomberg)