A second characteristic of the crisis involves the behavior of liquidity and credit spreads. Whether you look at the difference between yields on US treasuries and LIBOR or spreads on jumbo mortgages or on agency securities or municipal bonds or indices of yield, then on asset-backed securities or credit default spreads or issuance of commercial paper, and you look at the same things in the eurozone in the UK market, what you see is that over the past seven to eight months, these indicators of liquidity and credit risk have been very volatile and have at times been much higher than anything we’ve seen over the.
