What Is a Corporate Spread

A corporate (or credit) spread is the extra interest a lender requires to compensate them for risk. The spread is measured in basis points (hundredths of a percent) over the relevant Government bond yield. The higher the perceived risk, the wider the spread.

What is the spread of a company?

Generally, the spread refers to the difference between two prices, rates, or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond, or commodity.

What does it mean when a company's corporate spread tightens?

what does it mean when a company’s corporate spread tightens? the company’s bonds are outperforming the benchmark yield. You just studied 52 terms!