How Are the "Credit Markets" doing?

I keep hearing this crises is all about the credit markets. Is there some place i can go, some chart I can see, some ticker I can run someplace that will tell me how happy or unhappy the credit markets are from hour to hour? I can see the major indexes but i'm not sure that tells me about the credit markets.

Ok, if the credit market is the bond market then here is a link I just found.

I note that the very short term bonds are down over 50%. OUCH. What does that mean? though. I'll have to try and think it through. No one wants to buy the short term bonds? No interest in bonds? In any case this big drop on the 3 month looks impressive and maybe a problem?

Ok, if the credit market is the bond market then here is a link I just found.

I note that the very short term bonds are down over 50%. OUCH. What does that mean? though. I'll have to try and think it through. No one wants to buy the short term bonds? No interest in bonds? In any case this big drop on the 3 month looks impressive and maybe a problem?

Ok so if interest rates on the 3 month are collapsing does that mean excess demand....people fleeing to safety? Money coming from money markets to short term bonds thus squeezing the credit markets?

This stuff is too complicated for me.

one thing they are talking about is the CP (commercial paper) market. i think it is over $1.5 trillion, the "t" thing. it is very short term .... 30,60,90. corporations rely heavily on it. GE, for instance has to roll $100 billion. now, GE may have a bit of a problem with over $450 billion in receivables. would YOU lend them $$?

You've got it backward, SB. That's the yield. Nobody wants risk so their buying the short paper, not selling it. It's panic-type action, but in the safe stuff, it's panic buying. Mark

oh ... he's talking about gubmint stuff? the freeze up thing is/was/will be in CP for one.

You've got it backward, SB.

That's the yield. Nobody wants risk so their buying the short paper, not selling it.

It's panic-type action, but in the safe stuff, it's panic buying.

Mark

Thanks. I think I have my head straight now. I'm going to keep an eye on that yield because to me that's what's telling us what the important market is thinking. If we get full panic the yield might go to zero. I wonder if it can go negative. If I buyers can actually pay to own the 3 month and wind up with say...LESS when it matures but at least at a small loss they can count on?

Wow, maybe I can rent out my basement.....your big institution can store cash in my basement for a fee!

I keep hearing this crises is all about the credit markets. Is there some place i can go, some chart I can see, some ticker I can run someplace that will tell me how happy or unhappy the credit markets are from hour to hour?

I can see the major indexes but i'm not sure that tells me about the credit markets.

I also look at TED spread, which is the difference between 3-month LIBOR and 3-month T-bills. It shows how much banks trust each other; the higher the spread, the lower the trust.


http://www.bloomberg...cker=.TEDSP:IND