Credit spread: Difference between revisions
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imported>Administrator (CSV import) |
imported>Doug Williamson m (Spacing and indentation) |
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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. | 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. | 2. The difference in value of two securities with comparable maturity and yield but different credit jurisdiction. | ||
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* [[Risk free rate of return]] | * [[Risk free rate of return]] | ||
* [[Yield]] | * [[Yield]] | ||
Revision as of 12:36, 5 August 2013
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 'risk-free' security. In other words the proportion of the total return that the issuer must pay due to credit risk.
