The TED spread is the difference between

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The TED spread represents the difference between the interest rate at which banks lend to each other in the Eurodollar market (typically represented by the London Inter-Bank Offered Rate or LIBOR) and the interest rate on short-term U.S. government debt (usually represented by the three-month Treasury bill rate) or some measure of risk-less interest. The spread reflects the perceived credit risk in the economy and is used as an indicator of the health of the banking system.

The TED Spread Is the Difference Between