The difference in interest rate between – an unsecured deposit (EURIBOR) and – a secured deposit (Eurepo) on the interbank market. As a rule, the corresponding difference is expressed in basis points and refers to three-month money. The spread is a measure of uncertainty and confidence/mistrust in the European money market. – During the financial crisis that followed the subprime crisis, the deviation of both interest rates increased from a previous average of seven basis points to as much as one hundred and eighty basis points. – See sentiment, TED spread. – Cf. ECB Monthly Bulletin, February 2010, pp. 71 et seq. (euro repo markets in the financial crisis; many overviews).
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