Credit Spreads Ignore Cash Infusion

TED spread hits new high.

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What does a $247 billion cash infusion buy you? Not a whole lot just yet.

The TED spread, a closely watched gauge of credit risk that measures the spread between three-month treasuries and the interbank lending rate, jumped to 490 basis points Thursday even after global central banks agreed to pump $180 billion in liquidity into the financial system. According to Reuters, that's more than double the spread at any other time during this 13-month crisis.