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 ?
While the CDS spread is observable in the market, it is not obvious how to compute the appropriate corporate bond spread. As discussed by Duffie (1999), the ideal corporate bond spread would be the spread over Libor of a floating rate note with the same maturity as the CDS referenced on the same firm.
RSA said the reduction reflects long-dated sterling bond spread volatility on discounted pension values, as well as foreign exchange and bond yield movements.
whereas, Abu Dhabi 2027 bond spread has compressed to 0.81 per cent from 1.04 per cent a month ago.
High-Grade Bond Spread to 2007 Levels on ThinkAdvisor.
They also investigate the impact of credit rating on bond spread during financial crisis of 2008.They used daily data of credit rating and emerging market bond spread from 1998 to 2012.
Second, we identify the main drivers of the cat bond spread at issuance by running a series of ordinary least squares (OLS) regressions with heteroskedasticityand autocorrelation-consistent (HAC) standard errors.
###Corporate bond spread, Sovereign###The index was compared
In this regard, this paper aims to examine which factors influence the various credit risk markets, including bond spread and credit default swap (CDS), replicating the main studies on the subject for the specific case of Petrobras, in an attempt to analyze whether the two products price risk differently and, if so, why.
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.
A yes vote shares the cost with state funding of almost $8 million, donations from concerned citizens of just under $2 million and the town's contribution of a $13.6 million bond spread over 20 years.