Credit spread

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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.

See also