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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use