Unformatted text preview: climb in years. Banks are reluctant to lend out money so that is driving up the short term borrowing rate. 3. The yield on Eurodollars referred to in the linked webpage has been historically closely linked with LIBOR. The author indicated that the increase in the spread may signal what about market conditions (related to what we just covered in class)? The elevated levels in the Ted spread indicate that investors are currently in a state of risk aversion. Investors are looking for short term T-bills, which are risk free, to ease their investing tensions....
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- Fall '07
- Finance, London Interbank Offered Rate, Eurodollar, interbank offered rate, Weekly Wall Street Journal Assignment