{"id":15542,"date":"2015-12-21T16:25:14","date_gmt":"2015-12-21T21:25:14","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15542"},"modified":"2015-12-21T16:25:14","modified_gmt":"2015-12-21T21:25:14","slug":"bank-counterparty-risk-surges-to-4-year-high","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15542","title":{"rendered":"Bank Counterparty Risk Surges To 4-Year High"},"content":{"rendered":"

Bank Counterparty Risk Surges To 4-Year High<\/a><\/h3>\n
The TED Spread is the difference between the interest rates on interbank loans and on short-term U.S. government debt and as such offers a proxy for how banks themselves perceive the relative creditworthiness of the financial system.\u00a0<\/em>The last time TED spread was surging to this level was late 2011, as Europe’s crises was exploding.<\/strong><\/div>\n
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Which makes one wonder whether The Fed rate hike was –\u00a0as we detailed here<\/a>\u00a0–\u00a0an implicit bailout for foreign (read European) banks?<\/strong><\/p>\n

But the pace of increase is extremely worrisome historically<\/p>\n

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The Fed just hiked into this massive two-week surge in TED spreads<\/strong>; as opposed cutting by 75 bps in 2008 and unleashing more QE at Jackson Hole in 2011!\u00a0\u00a0That hike seems akin to what happened in Sep-08 when Lehman went Bankrupt.<\/strong><\/p>\n

(h\/t Brendan Ferro)<\/em><\/p>\n

US financials credit risk continues to push wider (with stocks remaining cognitively disssonant for now).<\/p>\n<\/div>\n

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With the\u00a0Fed’s own National Activity Index tumbling<\/a>,\u00a0its own Financial Stress Index soaring<\/a>, and now major concerns about the US financial system’s stability looming, one has to ask, how long before Janet unleashes the next QE?<\/p>\n<\/div>\n

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Bank Counterparty Risk Surges To 4-Year High The TED Spread is the difference between the interest rates on interbank loans and on short-term U.S. government debt and as such offers a proxy for how banks themselves perceive the relative creditworthiness of the financial system.\u00a0The last time TED spread was surging to this level was late […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1361,63,303,305,430,6654,534,661,662,11184,4318],"class_list":["post-15542","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bankruptcy","tag-banks","tag-fed","tag-federal-reserve","tag-interest-rate","tag-lehman","tag-monetary-policy","tag-qe","tag-quantitative-easing","tag-ted-spread","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15542"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15542\/revisions"}],"predecessor-version":[{"id":15543,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15542\/revisions\/15543"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}