Center for Economic Research and ForecastingInterest Rate Spreads Archives - Center for Economic Research and Forecasting

Rising Spreads May Indicate Regime Shift

By Dan Hamilton
Monday Sep 12, 2011

Interest rate spreads are returning to higher levels, levels that indicate financial and economic instability. This could indicate that an economic regime shift may occur this year. The normalized TED, which is the 3 month LIBOR minus the 3-month Treasury divided by the 3-month Treasury, has reached a level not seen since the fall of 2008.… Read more