Despite my being bullish on the US Market's immediate term "Trade", this remains one of the main reasons why I am negative on the intermediate "Trend". Credit risk remains a structural issue. Until this spread narrows again, investors, companies, and countries alike with the largest cash (liquidity) position will win this game of monopoly.
As the TED spread widens, the risk of defaults and bankruptcies continues to heighten. The global bankruptcy cycle is in its early stage.