Dictionary of Banking Terms: credit 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.
Dictionary of Finance and Investment Terms: 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.
