TED spread  = 3 month LIBOR rate - 3 month T-bill interest rate.

For example, if the T-bill rate is 5.10% and ED trades at 5.50%, the TED spread is 40 bps.

The TED spread is an indicator of perceived credit risk in the general economy.

T-bills are considered risk-free while LIBOR reflects the credit risk of lending to commercial banks.

Its in the 2006 range, looks OK now.

TED Spread  vs. Time