yield spread

yield spread
The difference in yield between different security issues usually securities of different credit quality. Bloomberg Financial Dictionary

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yield spread yield spread spread2

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yield spread UK US noun [C]
(also yield gap) FINANCE the difference between the rates of interest on two different types of share, bond, etc.: yield spread between sth and sth »

Demand has narrowed the yield spread between high- and low-quality bonds.

»

The positive yield gap between shares and index-linked gilts has widened.

BANKING the difference between what banks pay to borrow money and what they charge for lending it: »

The yield spread is an economically significant predictor of real economic activity.


Financial and business terms. 2012.

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Look at other dictionaries:

  • Yield spread — In finance, the yield spread is the difference between the quoted rates of return on two different investments, usually of different credit quality.It is a compound of yield and spread.The yield spread of X over Y is simply the percentage return… …   Wikipedia

  • Yield Spread — The difference between yields on differing debt instruments, calculated by deducting the yield of one instrument from another. The higher the yield spread, the greater the difference between the yields offered by each instrument. The spread can… …   Investment dictionary

  • Yield spread premium — The yield spread premium (YSP) is the cash rebate paid to a mortgage broker based on selling an interest rate above the wholesale par rate that the borrower qualifies for. For example, If a mortgage broker offers a borrower a loan of $100,000 at… …   Wikipedia

  • Yield Spread Premium — A form of compensation that a mortgage broker, acting as the intermediary, receives from the original lender for selling an interest rate to a borrower that is above the lender s par rate for which the borrower qualifies. The yield spread premium …   Investment dictionary

  • Yield spread strategies — Strategies that involve positioning a portfolio to capitalize on expected changes in yield spreads between sectors of the bond market. The New York Times Financial Glossary …   Financial and business terms

  • yield spread strategies — Investments that position a portfolio to capitalize on expected changes in yield spreads between sectors of the bond market. Bloomberg Financial Dictionary …   Financial and business terms

  • Relative yield spread — The ratio of the yield spread to the yield level. The New York Times Financial Glossary …   Financial and business terms

  • relative yield spread — The ratio of the yield spread to the yield level. Used for bonds. Bloomberg Financial Dictionary …   Financial and business terms

  • Yield curve spread — on a simple mortgage backed security (MBS) is the flat spread over the treasury yield curve required in discounting a pre determined coupon schedule to arrive at its present market price.That is, the MBS yield curve spread is based on a… …   Wikipedia

  • yield gap — ˈyield gap noun [countable] FINANCE the difference between the amounts of interest on two types of bonds: • The yield gap between the three month bill and the 30 year bond widened to 213 basis points from 212. * * *    Also known as yield ratio.… …   Financial and business terms

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