TED spread
Noun
The difference between three-month LIBOR and the three-month T-bill interest rate, it serving as an indicator of credit condition in the US economy since T-bills are considered risk-free and LIBOR reflects the credit risk of lending (deposits) to commercial banks.
Comment:
The acronym TED was formed from T-bill and ED, the ticker symbol formally used for the CME Eurodollar futures contract.
