DEFINITION
Credit Spread

"Credit spread": 1. The difference in yield between a given security and a comparable benchmark government security. It gives an indication of the issuer’s credit quality. 2. The difference in value of two securities with comparable maturity and yield but different credit jurisdiction. 3. The extra yield on a debt security over the equivalent theoretical 'risk-free' security. In other words the proportion of the total return that the issuer must pay due to credit risk.
Loading conversations.
Similar or Related Terms
Statistics
401
Characters
75
Words
33.41
Flesch Reading Ease
11.7
Flesch Kincaid Grade