A spread option position in which the price of the option sold is greater than the price of the option bought.
A credit spread is the difference in yield between two debt issues of similar maturity and duration. The credit spread is often used as a measure of relative creditworthiness, with reduction in the credit spread reflecting an improvement in the borrower's perceived creditworthiness.
The positive difference between the value of a sold option and of a bought option.
An option spread position in which the premium of the option sold is greater than the premium of the option purchased.
A spread in which the value of the option sold exceeds the value of the option purchased.
an option strategy that involves the simultaneous sale and purchase of an option with common underliers and expiration dates
The difference in the yield of two bonds that can be explained by differences in their credit quality. All other things being equal, the higher the perceived level of risk of default by the issuer or currency risk inherent in a particular bond, the higher the level of income (yield) investors will demand from that bond. Credit spreads may vary in size over time. Investment managers can add value by investing in bonds ahead of spreads ‘tightening in' (reducing).
the difference between two securities' yields based solely on differences in credit quality.
See "bearish credit spread" or "bullish credit spread."
Is an option position whereby the end result is a credit. For example, the investor who places a vertical bear call spread receives a credit. Similarly, the trader who places a vertical bull put spread receives a premium credit.
A spread strategy that increases the account's cash balance when it is established. A bull spread with puts and a bear spread with calls are examples of credit spreads.
The difference in value of two options, where the value of the one sold exceeds the value of the one purchased.
difference in the value of two options
An option spread position whereby the premium of the option sold exceeds the premium of the option purchased--thus, creating a credit to the investor. See: Debit Spread; Options; Option Premium; Option Spread; Spread
The difference between the yield on a lower rated bond and a higher rated bond.
The difference in value of two options, where the premium of the option sold exceeds the cost of the option purchased.
The difference in value between 2 options, where the value of the short position exceeds the value of the long position.
A yield or interest rate spread due to credit risk.
The yield differential between government bonds and corporate bonds or credits.
The difference between the yield on the debt securities of a particular corporate or sovereign borrower (or a class of borrowers with a specified credit rating) and the yield of similar maturity Treasury debt securities.
A spread in prices or interest rates resulting from credit risk.
Difference on the yield of a corporate bonds compared with a government bonds of a similar maturity. Credit spreads are higher for companies with lower credit ratings to compensate investors for the higher risk.
In finance, a credit spread, or net credit spread, is the difference in yield between different securities due to different credit quality.