Bond Spread

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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 ?
Consequently, corporate bond spreads are likely to remain under pressure.
Even when adjusting for the blowout in bond spreads in Argentina this month, this financial measure holds at 5.9 percentage points, still the widest in more than a decade.
TABLE 1 Summary statistics of discrepancies in CDS and cash bond spreads Before Crisis Crisis I Crisis II July 2006-June July 2007-Aug.
The tight liquidity is visible in high credit-deposit ratio and elevated corporate bond spreads. RBI's commentary on liquidity should be closely watched," said Khattar.
Non-life insurers are less exposed to government bond spreads (and asset performance in general), as investment represents a smaller part of their business.
Then government spokesman Stephanos Stephanou had stated "the loan will enable Cyprus to cover its medium-term refinancing needs, avoiding liquidity strains on local commercial banks, as well as restore international investors' confidence and ease the rising tendencies on Cypriot bond spreads in the European secondary markets".
The report expects Lebanese bond spreads to retrace the widening since January 10, and expects the front end to benefit the most along the curve.
Bond market spillovers from Saudi to other GCC countries are found to be insignificant, which is consistent with previous findings that bond spreads are largely influenced by global factors.
Bond spreads increased, and concern rose over bond issuers' ability to repay their bonds.
An additional advantage of this ground-up approach is that we are able to construct matched portfolios of equity returns, allowing us to examine the information content of bond spreads that is independent of the information contained in stock prices of the same set of firms, as well as in macroeconomic variables measuring economic activity, inflation, interest rates, and other financial indicators.
"Despite February's challenging market conditions, our latest analysis of portfolio allocation trends shows a relative preference for local currency EM bond allocations, consistent with the tightening of local currency bond spreads relative to US Treasuries observed last month (which has held up for many in early March).
(2013) who find a robust negative effect of fiscal rules on bond spreads for Swiss cantons.