Maturity spread

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Maturity spread

The difference in returns between bonds of different time lengths.

Maturity Spread

The difference in return between two bonds, one with a longer maturity than the other. Most of the time, the bond with the longer maturity has the higher return, though this is not always the case. See also: Yield Curve.
References in periodicals archive ?
- The banking sector's aggressive booking of PIBs in 9M14 amid abnormal maturity spreads has not only enhanced NIM for 2014/15 but has left the sweet aftertaste of hefty pending revaluation gains on the books
The policy rate cut was accompanied with a 155bp drop in 3 year PIB maturity spread to 95bp.
FRIDAY NOV 21 2014 - BANKS: MATURITY SPREAD SHRINKS; PREFER MCB
We collect the CDS constant maturity spreads on a daily basis at the end of each year (averaged for the last 10 trading days) over the period 2002- 2009.
In addition, the 'price' of a CDS is normally quoted as a constant maturity spread, whereas bond spreads are calculated by subtracting an unknown risk-free interest rate from the bond yield and are therefore not directly comparable if the maturities of the underlying bonds differ (Alexander, Kaeck 2008).
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