Definition 1.
The difference between the rate for Treasury Bills and the rate for Eurodollar Bills. The resulting price discrepancy is an indicator of credit risk. An increasing TED spread is thought to indicate increasing risk, while a decreasing TED spread is thought to indicate decreasing risk.
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Definition 2.
The difference between Treasury bill and eurodollar futures prices. A widening TED spread is seen as an indication of credit quality concerns in the banking sector.
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Definition 3.
Difference between U.S. Treasury bill rate and Eurodollar rate; used by some traders as a measure of investor/trader anxiety or credit quality.
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Definition 4.
The price difference between three-month futures contracts for U.S. Treasuries and three-month contracts for Eurodollars having identical expiration months.
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