Credit spread: Difference between revisions
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imported>Doug Williamson (Added extra line space before See also) |
imported>Doug Williamson m (Categorise.) |
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The difference in yield between a given security and a comparable benchmark government security. | |||
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. | 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. | |||
== See also == | == See also == | ||
* [[Credit risk]] | |||
* [[Credit spread risk]] | |||
* [[G+]] | * [[G+]] | ||
* [[Risk free rate of return]] | * [[Risk-free rate of return]] | ||
* [[Yield]] | * [[Yield]] | ||
[[Category:Corporate_financial_management]] | |||
[[Category:Financial_risk_management]] | |||
[[Category:Financial_products_and_markets]] | |||
Revision as of 11:02, 21 February 2018
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.
