Generic credit spread(redirected from Generic Credit Spreads)
Generic credit spread
Refers to the corporate bond spread for a particular credit rating and expiry. For example, 10-year single A corporates were priced or trading at 130 basis points above Treasuries last night, or said differently, 130 is the generic credit spread for 10-year single A corporates.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Generic Credit Spread
The difference in yield between two debt securities with the same features except riskiness. That is, the generic credit spread is the difference between a yield on a debt security with a given credit rating and the yield on another with the same coupon rate and maturity but a different credit rating. In all cases, the riskier debt security will have a higher yield. It is also simply called a credit spread. See also: Risk premium.
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