It's a start...but spreads are still ridiculously high

Initial market reaction after announcement of coordinated policy interventions at the G7 and the Eurozone is positive: Credit spreads start to ease:

- O/N USD LIBOR: 246bp down from 463bp (17bp pre-crisis)

- TED spread (3m LIBOR-T-bill spread) slightly down to 456 from record 463 earlier on Oct 13 after Fed announces unlimited USD liquidity (17bp pre-crisis)

- 3M USD LIBOR-OIS slightly down to 359 from 364 (10bp pre-crisis)

- 3M EUR LIBOR-OIS narrows to 182bp from 207 (10bp pre-crisis)

Looking at how low spreads were before this crisis and where they stand today, it is obvious the credit markets will take years to fully recover. I'd say by the 4th year of an Obama Presidency ;-)