answersLogoWhite

0

Default spread refers to the difference in yield between a corporate bond and a risk-free benchmark, typically government securities, reflecting the additional risk of default associated with the corporate bond. It serves as a measure of credit risk, with wider spreads indicating higher perceived risk of default by the issuer. Investors use the default spread to assess the relative risk and return of different bonds in their portfolio. Essentially, it quantifies the compensation investors demand for taking on the additional risk of lending to a borrower with lower creditworthiness.

User Avatar

AnswerBot

1mo ago

What else can I help you with?

Related Questions

What would you expect to happen to the spread between yields on commercial paper and Treasury bills if the economy were to enter a steep recession?

The spread will widen. Deterioration of the economy increases credit risk, that is, the likelihood of default. Investors will demand a greater premium on debt securities subject to default risk.


What are the regular controls for Call of Duty Black Ops?

on xbox Default and default and on ps default and alternative default


How many sheets are on an excel document when you first open it?

The default is 3, though this can be changed.The default is 3, though this can be changed.The default is 3, though this can be changed.The default is 3, though this can be changed.The default is 3, though this can be changed.The default is 3, though this can be changed.The default is 3, though this can be changed.The default is 3, though this can be changed.The default is 3, though this can be changed.The default is 3, though this can be changed.The default is 3, though this can be changed.


A sentence for default?

The word default can be used as a noun or a verb. He worried she had chosen him by default. The device was stuck on the default setting.


What is the default parental control pin for comcast?

There is no default pin. The default is 'not programmed'.


Is right alignment the default text in Excel?

No. By default, text is left aligned in Excel.No. By default, text is left aligned in Excel.No. By default, text is left aligned in Excel.No. By default, text is left aligned in Excel.No. By default, text is left aligned in Excel.No. By default, text is left aligned in Excel.No. By default, text is left aligned in Excel.No. By default, text is left aligned in Excel.No. By default, text is left aligned in Excel.No. By default, text is left aligned in Excel.No. By default, text is left aligned in Excel.


What is the alvarion router default ssid?

default


What is a default letter?

What is a Default Clearance Letter?


What is a default network in computer networks?

There is no such thing as a 'default network'. Perhaps you meant 'default gateway'?


What is the default name for the first worksheet in a workbook?

Normal View is the default view for a worksheet.Normal View is the default view for a worksheet.Normal View is the default view for a worksheet.Normal View is the default view for a worksheet.Normal View is the default view for a worksheet.Normal View is the default view for a worksheet.Normal View is the default view for a worksheet.Normal View is the default view for a worksheet.Normal View is the default view for a worksheet.Normal View is the default view for a worksheet.Normal View is the default view for a worksheet.


What is the default subnet mask of a class A address?

Class A default is 255.0.0.0 Class B default is 255.255.0.0 Class C default is 255.255.255.0


What is default port for ip?

TCP has no default port. Individual applications - such as FTP, DNS, or Telnet - do have default ports.