Tuesday, October 14, 2008

Good news: swap spreads moving down

This is encouraging, since it means that big money players on the margin are more willing to lend to each other (or should I say they are less frightened of lending to each other?). But we're not out of the woods by any stretch yet. This spread will have to drop back below 80 before we can declare victory. In normal times it runs in the 30-40 neighborhood.

2 comments:

  1. Thanks for updating on the spread. Regarding "normal times" will recent events have large impact on what constitutes normal times? That is, could the 30-40 become some other range going forward?

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  2. It may take us awhile to get to 30-40, but I don't see why the "normal" range should be different in the future.

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