credit spread

Definition of "credit spread"
  1. The gap in yield between debt securities from a particular borrower and similar maturity Treasury debt securities
How to use "credit spread" in a sentence
  1. In investment, high-risk firms generally have a higher credit spread than low-risk firms.
  2. Credit spread increases when the economy is slowing down.
  3. Monitoring credit spread can help investors gauge market perception of risk.

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