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 ?
The authors argue that the corporate bond spread reflects a convenience yield that investors attribute to Treasury debt.
The low, wade corporate bond spread provides an especially good gauge of the market's perception of and tolerance for credit risk in the market.
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 high-yield spread is a corporate bond spread that might be particularly good to look at for this kind of information.
As yet, there has been no investigation comparing loan and bond spread determinants in the 1990s.
Japan bond spread helped the dollar to rise moderately," said Minori Uchida, head of Tokyo global market research at Bank of Tokyo-Mitsubishi UFJ.
Berlusconi on Tuesday said Monti was "too German-centric" and said the bond spread -- a key measure of the difference between Italian and German bond yields -- was "a trick and an invention" used to bring down his government.
The Information in the High-Yield Bond Spread for the Business Cycle: Evidence and Some Implications," Mark Gertler and Cara Lown, 1999.
The tribunal heard that prison officer Nigel Bond spread rumours among inmates that Miss Jones used to be a lap dancer.
For each group of announcements, we calculate weighted (standardized) means in which the weights equal the inverse of the standard deviation of the relevant daily changes in the logged relative bond spread calculated during the ninety-day period ending ten days before the announcement day.
The subordinate bond is placed on Rating Watch Negative because the rating is expected to be downgraded to 'BB' or below if parity does not reach 100% before the senior bond is paid off, given the limited potential for parity buildup with the high subordinate bond spread.