Top 10 Financial Crisis Buzzwords

From Naked Shorts to TED Spreads, a quick primer on the jargon that has emerged from this recent financial crisis

  • Print

Definition: The difference between interest rates on Treasury bills and the interest rate non-U.S. banks charge each other (The "T" is for Treasury, the "ED" is for Eurodollars, though doesn't refer solely to Euros). When investors get nervous and banks view loans as risky, the TED Spread gets wider. When the markets are stable, the difference is narrow. In the past three months, the TED Spread has gone from about 1 to just short of 4.

Usage: "Short-term interest rate swaps shot wider, and the TED spread—considered a measure of banks' unwillingness to lend money—blew out to a record wide." (Reuters, Sept. 30, 2008)

View the full list for "Top 10 Financial Crisis Buzzwords"