The three charts below are key measure of risk in the financial system and measure how will large banks and institutions are to lend to each other.
Risk is slowly creeping back into the banking system, as fear grows the Greece’s fiscal crisis may spread to Portugal, Spain and beyond. We’re nowhere near the numbers seen post-Lehman crisis, but the uptick definitely bears monitoring.
In Europe, it’s a different matter, with counterparty risk rising dramatically on worries that debt writedowns could have a major impact on individual bank balance sheets.
Fears about the future of the euro have taken a big toll over the past week.
TED spread
3-month LIBOR
2-year U.S. dollar swap spread
All charts offered from Bloomberg.
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