Credit spread: Difference between revisions
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3. '' | 3. ''Other borrowings.'' | ||
Similarly, the extra interest payable on a borrowing - over the reference 'risk-free' market interest rate - to reflect a borrower's credit risk. | |||
== See also == | == See also == | ||
* [[Credit]] | |||
* [[Credit risk]] | * [[Credit risk]] | ||
* [[Credit spread risk]] | * [[Credit spread risk]] | ||
* [[G+]] | * [[G+]] | ||
* [[Risk-free rate of return]] | * [[Risk-free rate of return]] | ||
* [[Risk-free rates]] | |||
* [[Security]] | * [[Security]] | ||
* [[Spread]] | |||
* [[Yield]] | * [[Yield]] | ||
Latest revision as of 12:05, 6 July 2022
1. Securities - issuer's credit quality.
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. Securities - value differential.
The difference in value of two securities with comparable maturity and yield but different credit jurisdiction.
3. Other borrowings.
Similarly, the extra interest payable on a borrowing - over the reference 'risk-free' market interest rate - to reflect a borrower's credit risk.
