The TED Spread is a measure of the difference between three-month U.S. Treasury bills and three-month Eurodollar interest rates, expressed as a percentage. It’s named after the acronym for Treasuries and Eurodollars, and is used to gauge potential financial stress in the market. By evaluating the disparity between these two benchmarks, investors can get an idea of how worried banks are about lending money. In periods of economic turbulence, higher TED Spreads indicate that banks are more concerned about their own safety than they are about lending money to others, suggesting heightened risk tolerance among investors.