tag:blogger.com,1999:blog-7116655923089210472.post5844137720427009131..comments2023-08-25T17:49:44.412-07:00Comments on Thoughts of a Sensible Mortgage Banker: LIBOR: London's calling and your rates will be higher.The Editorhttp://www.blogger.com/profile/10962625735760822645noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7116655923089210472.post-40952412461327954992007-12-30T21:44:00.000-08:002007-12-30T21:44:00.000-08:00Hi. One small comment -- The Libor/Treasury Sprea...Hi. One small comment -- The Libor/Treasury Spread, also called the TED spread, is historically higher than 10 bps. The spread that has been closer to 10 bps over the last few years and is now about 75 bps is the 3 month Libor over the Fed Funds Rate.<BR/><BR/>In either case, Libor spreads remain significantly elevated due to the suspicions banks have about each other's balance sheets (because of information asymmetries -- which have shown to be a classic cause of market failure)Anonymoushttps://www.blogger.com/profile/09528103828869437049noreply@blogger.com