Tom Jacobs

JPMorgan, Amex Issue Non-FDIC Backed Debt

You are not comparing apples to apples here. A 120 bp spread for CDS needs to be added to the TED spread equivalent at term to compare to an issue over Treasury. On Friday per the H15 statistical release,

www.federalreserve.gov...

the difference was 46bp using CMT for 5 Year Treasury, lowering your balance sheet cost to about 110bp for the JP Morgan placement. Still a big number.