Bond Spread

Bond Spread

The difference in yield between one bond and another with a lower credit rating. In general, the bond with a lower rating has the higher yield because of the added risk involved. As such, bond spreads are used to compare risk.
References in periodicals archive ?
By using a method based on a VAR model and bond spread data, they concluded that up to 44% of the dynamics of the Czech credit premiums could be explained by the dynamics of foreign premiums.
Finally, we include a set of year-quarter dummy variables to control for any effects that economic conditions at the time of the issue may have on the bond spread.
2 interest spread Corporate 2950 2152 -27 0 bond spread Liquidity 3.
He said that after recent reviews of what happened to developing countries following the August 2011 near miss on the default, the Bank found that in developing countries the cost of borrowing, bond spreads, went about 75 basis points and that bond spread persisted for months.
Bank bond spread This spread is measured as the difference between the 10-year A-rated bond yield and the 10-year U.
As illustrated in figure 1, the rise in bond spread dispersion can be largely, but not exclusively, attributed to Greece, Ireland and Portugal.
The authors argue that the corporate bond spread reflects a convenience yield that investors attribute to Treasury debt.
The bond spread series, given that the market is sufficiently deep," should provide a better default risk index.
Japan bond spread should add to the dollar's upward momentum, so if the stock market regains its strength, the dollar could rise further (against the yen,)" Saito said.
The spreads initially declined with the onset of the financial crisis and the industrial spreads declined prior to the TAF announcement, while the AA-rated corporate financial bond spread remained relatively stable at about 50 basis points.
The high-yield spread is a corporate bond spread that might be particularly good to look at for this kind of information.
Japan bond spread should be increasing the dollar's upward momentum, so if the stock market regains its strength, the dollar could rise further (against the yen,)" Saito said.