Global lending conditions have started to noticeably improve as the “Ted” spread*, a common default risk gauge, has fallen -5.93% in the past two days having set an all-time record high just last Friday. That said, the magnitude of this pullback thus far may still fall in the realm of a correction (as seen on several occasions along the way higher starting in mid-September). The Ted spread is defined as the price difference between short-term futures on US Treasury bonds and overseas USD-denominated deposits (commonly called "Eurodollars").
Ted Spread: Source: Bloomberg