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Business Definition for: credit spread
credit spread
difference in the value of two options, when the value of the one sold exceeds the value of the one bought. The opposite of a debit spread .
credit spread
- yield difference between Treasury securities and comparable non-Treasury securities, such as mortgage-backed bonds, expressed in basis points. Credit spreads widen in recessions and grow tighter in economic expansions.
- difference in value of two options on the same underlying security when the value of the option written (or sold) exceeds the value of the one bought.
Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
