"What is credit spread?
A credit spread refers to the difference in yield between two bonds or debt securities with different credit ratings. It's a measure of the additional risk premium investors demand for holding a bond with a lower credit rating compared to a bond with a higher credit rating.
In other words, credit spread reflects the market's perception of the borrower's creditworthiness and the likelihood of default. A wider credit spread indicates a higher perceived risk, while a narrower spread indicates a lower perceived risk.
Credit spreads are used in various financial contexts, including:$ETH #MyCOSTrade $XRP $BTC #BlackRockETHPurchase #TrumpTariffs
1. Bond markets
2. Credit analysis
3. Risk management
