Credit spread

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Revision as of 12:36, 5 August 2013 by imported>Doug Williamson (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.

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.

See also