Deconstructing Libor
Henri, in my comments yesterday, has a smart way of looking at the TED spread. The TED spread between Treasuries and Libor, he says, is the sum of two other spreads: the Treasuries-OIS spread plus the OIS-Libor spread. OIS stands for "overnight index swap", and it gives a good indication of where interest rates are when there isn't any credit risk.
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