TED Spread at 2.00!!!!

Quote from The Kin:

31 bps? That's got to be the all time low in the history of this country.
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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.
 
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.
 
Quote from h hubbins:

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.
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I like that theory but don't know how accurate it is
 
Quote from MrDODGE:

The article I was reading made it sound like it happened the other way around.
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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:
 
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