How Yield Spread Works Yield spreads are not fixed, of course. Because bond yields are always in motion, so too are spreads. The direction of the yield spread can increase, or “widen,” which means that the yield difference between two bonds or sectors is increasing. When spreads narrow,...
In the investment world, interest rate spreads are used to evaluate what an investment is paying compared to a benchmark rate. In the U.S., the benchmark is often the current rate on a specified U.S. Treasury security. In the bond market, the rates on corporate bonds will be compared ...
Does political instability matter for sovereign yield spreads in the Euro area market? The 2008/2009 global financial crisis had a major impact on the European government bond market. At the dawn of the crisis, after a decade of intra-Europea... A Cheptea,I Matei 被引量: 0发表: 0年 Ev...
Yield spreads are also pretty much the same as bid and ask spreads, but they are usually calculated for different assets. For example, the most popular asset that yield spreads are associated with bonds, and here’s how they calculate them. ...
aSovereign bond yield spreads (vis-à-vis the German bond) widened across euro area countries, while foreign and resident investors displayed flight-to-quality behaviour, influenced by a reassessment of borrower’s creditworthiness, partly reshuffling their portfolios to increase the weight of specific...
aGrande et all Journal of Financial Economics 54 (1999) 165}195net been its of Section 20 subsidiaries' entry into investment banking. Specially, our paper addresses the following issues: the elect of bank entry on corporate debt underwriting spreads and ex-ante yield spreads, which segments of...
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First, provincial fiscal positions (debt and deficits) are an important factor in determining yield spreads between provincial and Canada bonds. Second, we show that provincial bonds are a substitute for corporate debt, in that during recessionary `flights to quality' their yields react like those ...
Interpreting Yield Spreads A narrow yield spread, close to 1%, suggests that investors are confident in the economic outlook and believe that the risk of corporatedefaultsis low. This scenario is common during strong economic conditions, where investors are willing to accept lower premiums for holdin...
Indicative Spreads Academic studies of the relationship between an inverted yield curve and recessions have tended to look at the spread between the yields on the10-year U.S. Treasury bond and the three-month Treasury bill. On the other hand, market participants have more often focused on the...