Spread

From ACT Wiki
Revision as of 21:24, 27 March 2021 by Doug Williamson (Talk | contribs) (Add 3rd definition. Sources: linked pages.)

(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

1. Two-way price quotations.

Bid-offer spread.


2. Borrowing and investment.

The differential between the yields on two fixed-income securities, usually expressed in basis points.

In the corporate borrowing context, it is usually the difference between the yield on a fixed-income corporate security, and a comparable risk-free investment, such as a gilt.


3. Borrowing.

An addition to the interest rate charged to a borrower, reflecting their credit risk.

Also known as credit spread.


4. Statistics.

In statistics, spread is the extent to which data are clustered centrally, or more widely dispersed.

Measured for example by Standard deviation, Variance or Mean deviation.


See also