Both the TED spread and Libor-OIS spread will indicate stresses in the banking and financial sectors because both spreads show the bank borrowing rates for each other. When the spreads are high, it means that the banks don't trust each other and are unwilling to lend to each other at low rates.
The Libor-OIS spread is at a 6-year high now which is a warning sign that other interest rates will increase dramatically. Therefore, analysts have to watch out for such spreads for any impending financial crisis.
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