Yield spread refers to the difference in yields between two different financial instruments, typically bonds or other fixed-income securities. It is often expressed in basis points (bps), where one basis point is equal to 0.01%. The yield spread can provide insights into various market conditions and risk perceptions among investors. There are several contexts in which yield spreads are commonly discussed: 1. **Credit Spread**: This is the difference in yield between a corporate bond and a government bond (such as U.S.
New to topics? Read the docs here!