Credit Spread

The extra yield a bond offers over a comparable risk-free benchmark (usually a government bond), compensating investors for credit and liquidity risk. Spreads widen when credit risk or market stress increases.

Where Credit Spread comes up

Stocks and Bonds, and Why the Difference Decides EverythingOne makes you an owner and one makes you a lender. Every other difference is a consequence of that.Read the guide — 9 min

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