The TED spread 3 exceeded 300bps on September 17, 2008 breaking the previous record set after the Black Monday crash of 1987 and, thereafter, reached an all time high of 464 bps on Oct 10, 2008. The 3M LIBOR-3M OIS spread 4 touched the high of 364 bps on October 10, 2008 as against the normal level of around 10 bps.
The huge risk aversion was reflected in sharp decline in the stock indices across the globe and heightened volatility. Global equity markets witnessed major sell-offs in March 2009. The Dow Jones Industrial Average (DJIA) registered the new twelve-year low of 6,547.05 (on closing basis) on March 9, 2009 and had lost 20% of its value in only six weeks.