credit spread

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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.

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They aggregate these bond-level credit spreads to obtain indexes of credit risk for both banks and non-financial corporations in Germany, France, Italy, and Spain, as well as for the entire euro area.

Measuring credit risk in the euro area

The equity market correction that has been underway since October 17 has not been corroborated by widening of credit spreads.

Is the S&P 500 Correcting or Beginning to Collapse?

However, Fitch considers a prolonged period of wide credit spreads could exert pressure on Mapfre's strong capital adequacy as the Spanish sovereign debt keeps trading at high credit spreads against German bonds.

-Fitch maintains Mapfre at IFS A+ with "stable" outlook

Taipei, March 24, 2010 (CENS) -- Credit spreads in Taiwan's bond market are likely to stabilize in the first half of 2010, as the local economy continues to recover.

Credit spreads in Taiwan's bond market to stabilize in 1h 2010

5 billion due to the significant improvement in Morgan Stanley's credit spreads on certain of its long-term debt (debt-related credit spreads), while the prior year included positive revenue of $5.

Morgan Stanley reports full-year and fourth quarter results

Compared to the huge body of theoretical literature, empirical studies on credit spreads appear sparse.

Relations between corporate credit spreads, treasury yields and the equity market

Consequently, credit spreads on collateralized bonds understate the issuer's true default-risk premium.

Credit spreads and subordinated debt

The combination of historically elevated commodity prices and a robust global economy is great for a lot of these countries, so in that environment, credit spreads have narrowed.

The Bush economy: TIE sat down with Richard Clarida, the Bush Treasury's former point man for economic policy, for some frank talk on deficits, rate spreads, and inflation risks. Here's how he answered our questions

Low interest rates and high levels of liquidity have been one of the driving forces for this global boom, pushing up commodities and stock prices and reducing credit spreads and defaults.

A world of liquidity: the impact of cash-rich companies, countries and consumers; A noted economist traces the evolution of financial regulation, monetary cycles and the recent emergence of strong liquidity and its impact on global growth

Short credit is playing a key role in endowment strategy, say managers, because credit spreads are much too narrow and they're likely to widen.

Endowment management new and proven strategies: keeping a pulse on the economy helps today's endowment managers in their quest to bring their institutions the best returns possible

Because the period of rock bottom created such competition in the capital markets, the 10-year Treasury, which has long been considered the workhorse of real estate finance especially in times of rising short-term rates, has been increasingly replaced as of late with the 5-year Treasury bond, whose credit spreads have compressed markedly.

Interest rates riddle keeps investors on their toes

The second is the increase of arbitrage transactions stimulated by the expansion of credit spreads of comparatively low-rated Japanese companies during the latter part of 2001 and during the early part of 2002.