Accrued Interest has some numbers on banks’ credit spreads, and the news seems to be bad, but manageable. Crucially, they’ve tightened in from the open, and are now only a little bit wider than they closed on Friday.
Elsewhere in the world of credit, swap spreads are tighter across the board, which is definitely good news. And agencies have been doing a very good job of keeping up with soaring Treasury bonds and then some – agency spreads are actually tightening too.
So the verdict on the Fed’s weekend intervention? After one day, it seems to be working. But of course it’s still really too early to tell.
Update: More good news on stocks, too. Lehman’s now up $10 from its intraday lows, and is now down less than 20% on the day.