Credit Spread
Extra bond yield investors demand over a safer benchmark to compensate for credit risk and related fixed-income risks.
Benchmark spread terms for credit spreads, default spreads, government spreads, OAS, nominal spreads, and Z-spreads.
Benchmark spread measures compare a bond’s yield or price-implied return with a reference curve such as Treasuries, government bonds, swaps, or model-implied discount rates.
Use this branch when relative value depends on which spread convention is being quoted and what benchmark it uses.
| Term | What it clarifies |
|---|---|
| Credit Spread | Yield compensation over a reference rate for credit and related risks. |
| Default Spread | Spread connected to default-risk compensation. |
| G-Spread | Spread over an interpolated government bond curve. |
| Nominal Spread | Simple spread to a selected benchmark yield. |
| Option-Adjusted Spread | Spread adjusted for embedded-option value under model assumptions. |
| Z-Spread | Constant spread added to a spot curve to discount cash flows. |
Check benchmark curve, interpolation method, option model, cash-flow assumptions, settlement date, price source, currency, tax status, and whether the spread is quoted on the same basis as the comparison security.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Extra bond yield investors demand over a safer benchmark to compensate for credit risk and related fixed-income risks.
A default spread is the yield premium investors require for default risk relative to safer bonds with similar maturity.
Bond spread measure comparing a bond's yield with the yield of a government bond of similar maturity.
Nominal spread is the yield difference between a bond and a comparable Treasury benchmark without adjusting for curve shape.
Fixed-income spread measure that removes embedded-option value so callable or prepayable bonds can be compared more fairly.
Fixed-income spread measure that adds one constant spread to each point on the benchmark spot curve to match a bond's price.