TED Spread at 2.00!!!!

Discussion in 'Trading' started by MrDODGE, Mar 19, 2008.

  1. just checking; it sounded Bright may have been confused.
     
    #11     Mar 19, 2008
  2. 31 bps? That's got to be the all time low in the history of this country.
     
    #12     Mar 19, 2008
  3. they're yielding about 56bps....sorry for the confussion
     
    #13     Mar 19, 2008
  4. The last time interest rates were this low was when we were recovering from the Great Depression. Back in March 1942, the T-Bill rate was 0.25%. If you go back a bit farther, the rate hit 0.01% in January 1940.
     
    #14     Mar 19, 2008
  5. expiration is going to be followed by a long holiday weekend. a lot of money market funds just don't want the exposure over a long weekend. not indicative of anything but wanting rest after a crazy week.

    that's my theory.
     
    #15     Mar 19, 2008
  6. I like that theory but don't know how accurate it is
     
    #16     Mar 19, 2008
  7. No, Makloda is correct.

    The market crashed due to program trading and the $70 Billion of securities that were tied to Leland, Obrien, and Rubenstein's (LOR) "portfolio-insurance" ( or "dynamic-hedging ) strategy using S&P Futures.

    The fllight to Treasuries occurred second.
    That was one of PTJ's biggest trades . . . He took limit positions in Treasuries and made a small FORTUNE!

    :cool:
     
    #17     Mar 19, 2008