The answer to the below question from CFAI is C. Why? Why not B?
When Smith meets with Mathews to present these choices, Mathews tells him that she is somewhat confused by the various spread measures. She is curious to know whether there is one spread measure that could be used as a good indicator of the risk and liquidity of money market securities during the recent past.
The most appropriate response to Mathews question regarding a spread measure is the:
1. A.Z-spread.
2. B.TED spread.
3. C.MRR–OIS spread, formerly the Libor–OIS spread.