Investor Glossary-yield spreadInvestor Glossary-yield spreadInvestor Glossary-yield spreadInvestor Glossary-yield spreadInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Yield Spread

The HTML to link to this page
 

The term yield spread is the name given to the difference between two different yields, or rates. What yields depends upon the context in which the term yield spread is used. In talking about the yield curve, a bond market analyst may be a comment on the yield spread between the two and ten year treasuries. A mortgage broker is often compensated by the difference between the wholesale rate on the loan and the rate paid by the borrower, called the yield spread premium. The financial significance of a given yield spread is relative to the norm for that pair of yields. The larger the difference in yield spread from the norm, the greater the profit or loss for an entity sensitive to variation in that yield spread. A yield spread can also shrink to zero then begin to expand in the opposite direction, as happens in the case of a negative yield curve.



Rate this yield spread definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: reverse mortgage, current ratio, phantom income, APR, limit order, class C shares, labor relations, diluted share, covered put, dividends payable, debt service coverage, option premium, per diem, irrevocable trust, stock split, inflation, cancelled check, risk management, required rate of return, 1035 exchange, FICO score, 144a, minority interest, Key Rate Duration, average price per share, deferred revenue, liquidity ratio, command economy, annual return, LIBOR, quality assurance, VIX, ex-dividend, ex-dividend date, open position, in escrow, wholly-owned subsidiary, EBITDA, implied volatility, retained earnings, balance sheet, deferred tax, margin rate, 1031 exchange, Zero Cost Collar, FTSE, stock market close, 401a, real GDP


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use