TED continues to improve:
LIBOR-OIS continues to improve:
High yield spreads have come off their highs, but appear to be stabilizing at historically high levels:
The discount rate spread continues to improve:
The municipal swap index continues to improve:
ABS and CMBS are benefiting very little from the reflation trade:
Commercial paper continues to plummet:
There is no denying that the credit markets have improved substantially from their 2008 levels, but there are still signs of substantial strains. Most important is the lack of consumer borrowing. No matter how healthy the credit markets are the economy is unlikely to improve without consumer borrowing. You can take a horse to water….