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
STOCK MARKET AT A GLANCE
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).
Examining what best explains corporate credit risk: accounting-based versus market-based models
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