ted spread
Word Rarity
Uncommon
Frequency: Zipf frequency 4.15 in modern English
13
Scrabble Score
9
Letters
1
Syllables
7
Unique Chars
Meaning
name
The difference in yields between inter-bank and U.S. Government loans.
Etymology
Initially, the TED spread was the difference between the interest rate for the three month U.S. Treasuries contract and three month Eurodollars contract as represented by the London Inter Bank Offered Rate. So "TED" came from the initialism of "T-Bill" and "ED"—the ticker symbol for the Eurodollar futures contract. Since the Chicago Mercantile Exchange dropped the T-bill futures, the TED spread has had the current definition.