Credit Spread financial definition of Credit Spread. Credit Spread finance term by the Free Online Dictionary.

Credit spread

Applies to derivative products. Difference in the value of two options, when the value of the one sold exceeds the value of the one bought. One sells a "credit spread." Antithesis of a debit spread Related: Quality spread.

credit spread

The simultaneous sale of one option and purchase of another option that results in a credit to the investor's account. Thus, more funds are received from the sale than are required for the purchase. Compare debit spread.

Credit Spread

What Does Credit Spread Mean?

(1) The spread between Treasury securities and non-Treasury securities that are identical in all respects except for the quality rating.

(2) An options strategy in which a high-premium option is sold and a low-premium option is bought on the same underlying security.

Investopedia explains Credit Spread

(1) For instance, the yields on Treasuries are lower than the yields on single A-rated industrial bonds because the Treasuries are backed by the full-faith and credit of the government and are rated higher; the Industrial bond is not. (2) An option credit spread example would be buying a Jan 50 call on ABC for $2 and writing a Jan 45 call on ABC for $5. The net amount received (credit) is $3. The investor will profit if the spread narrows. This also can be called a credit spread option or credit risk option.

Related Terms:
• Bond
• Premium
• Treasury Bond—T-Bill
• Yield
• Yield Curve

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Box Spread Credit linked security Debit Spread Debt Financing Diferencial de credito Differentiel de taux Generic Credit Spread Quality Spread Ted Spread	Compared with the metrics listed above, extremes in relative valuation, high-yield credit spreads and GDP growth have been more reliable--albeit still imprecise--indicators of small-cap cycles. The boomer case for small-cap stocks by Quinn, Patrick / Boomer Market Advisor It's possible that credit spreads could expand from the current levels, but we expect that interest rate spreads will decrease to be more in line with their long-term norms and as that happens, the value of your interest-rate swap is going to decrease," Waite says. Market conditions may impede liability-driven investing by Treasury & Risk In fact, Morgan Stanley would have been profitable this quarter if not for the dramatic improvement in our credit spreads -- which is a significant positive development, but had a near-term negative impact on our revenues. Morgan Stanley swings to loss of $177 mln by AFP / AFP Global Edition	Credit Default Swap Credit Department Credit Derivative credit enhancement credit history Credit Insurance credit life insurance credit limit Credit Line Credit linked security Credit market Credit par acceptation Credit Period Credit Policy Delay Credit Quality Credit Rating Credit Rating Agencies Credit Rating Agency credit rating service credit report Credit Reporte credit reporting agency credit risk Credit Score credit scoring Credit Spread Credit Squeeze Credit Standards credit tenant Credit Terms credit union Credit Valuation Adjustments Credit Watch Credit-Balance Theory Crediteur Crediting rate Credito Credito al consumo Credito blando Credito de cobranca duvidosa Credito de renovacion automatic Credito di accettazione Credito Diferido Credito disponible Credito documentado Credito ficticio Credito fiscal Credito fiscal a las inversiones Credito fondiario Credito para exportaciones Credito por aceptacion	Credit Risk Certification Credit Risk Certified Credit Risk Control Credit Risk Grading Systems Credit Risk Management System Credit Risk Management Unit Credit Risk Mitigation Credit Risk Rating Credit Risk Standardised Approach Credit Risk Systems Credit Risk Transfer Credit River Anglers Association Credit Sale Agreement Credit score Credit score (United States) Credit score (United States) Credit scores Credit scoring Credit Scoring and Risk Strategy Association Credit Scoring System Credit Security Limited Credit Services Association Credit Shelter Trust credit side Crédit Social des Fonctionnaire Credit Spread Credit spreads credit squeeze credit squeeze credit squeeze credit squeeze credit squeeze Credit Squeezes Credit Squeezes Credit Standard Credit Standards credit standing credit standings Credit Suisse Credit Suisse Asset Management Credit Suisse Australian Fixed Interest Fund Credit Suisse Fear Barometer Credit Suisse Financial Products Credit Suisse First Boston Credit Suisse First Boston Corporation Credit Suisse First Boston Inc. Credit Suisse First Boston International Credit Suisse First Boston, Europe Credit Suisse Fund Administration Ltd Credit Suisse Group Credit Suisse Groupe Credit Suisse Information Bus Credit Suisse Institutional Master Fund Credit Suisse International Credit Suisse Private Banking

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References in periodicals archive

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Box Spread
Credit linked security
Debit Spread
Debt Financing
Diferencial de credito
Differentiel de taux
Generic Credit Spread
Quality Spread
Ted Spread

Compared with the metrics listed above, extremes in relative valuation, high-yield credit spreads and GDP growth have been more reliable--albeit still imprecise--indicators of small-cap cycles.

The boomer case for small-cap stocks by Quinn, Patrick / Boomer Market Advisor

It's possible that credit spreads could expand from the current levels, but we expect that interest rate spreads will decrease to be more in line with their long-term norms and as that happens, the value of your interest-rate swap is going to decrease," Waite says.

Market conditions may impede liability-driven investing by Treasury & Risk

In fact, Morgan Stanley would have been profitable this quarter if not for the dramatic improvement in our credit spreads -- which is a significant positive development, but had a near-term negative impact on our revenues.

Morgan Stanley swings to loss of $177 mln by AFP / AFP Global Edition

credit life insurance

credit limit

Credit Line

Credit linked security

Credit market