Investment dictionary

YIELD SPREAD

Yield Spread: translation

The difference between yields on differing debt instruments, calculated by deducting the yield of one instrument from another. The higher the yield spread, the greater the difference between the yields offered by each instrument. The spread can be measured between debt instruments of differing maturities, credit ratings and risk.

Looking at the yield spread, often with historical spreads, can give investors ideas for potential investment opportunities.

For example, if the five-year Treasury bond is at 5% and the 30-year Treasury bond is at 6%, the yield spread between the two debt instruments is 1% (6% - 5%). If the yield spread has historically been closer to 5%, the investor is much more likely to invest in the five-year bond compared to the 30-year bond (as it should be trading around 1% instead of 6%).

In other words, if the 30-year bond is trading at 6%, then based on the historical yield spread, the five-year should be trading at around 1%, making it very attractive at its current yield of 5%.

  1. yield spread—yield spread translation The difference in yield between different security issues usually securities of different credit quality. Bloomberg Financial Dictionaryu yie...Financial and business terms
  2. yield spread—Разница в доходности различных ценных бумаг...Англо-русский словарь по экономике
  3. yield spread—ком. разница в доходности различных типов ценных бумаг...Англо-русский универсальный дополнительный практический словарь И. Мостицкого
  4. yield spread—фин. спред доходности разница в доходности разница в доходности различных типов сходных активов одинаковых активов на разных рынках или в разные периоды и т. д. напр. раз...Англо-русский экономический словарь
  5. yield spread—дапазон дохдност...Англо-украинский бизнес словарь
  6. yield spread—дапазон дохдност...Англо-український бізнес-словник