Widening

From ACT Wiki
Jump to navigationJump to search

Bonds - issuance - yields - spreads.

In relation to a bond yield, especially at issuance, widening means an increase in the yield.

This makes the bond a higher-cost source of financing for the issuer.

The increase in yield is known as a widening, because the spread over the yield on the comparable risk-free benchmark security is increased.


See also