Benchmark Spread Measures

This section groups finance-first reference entries about benchmark spread measures. It keeps closely related terms together so readers can compare nearby concepts without returning to the old flat definitions archive.

Use these entries as quick anchors before moving into the broader investing, portfolio management, fixed-income, or equity sections around them.

In this section

• Credit Spread
  Extra bond yield investors demand over a safer benchmark to compensate for credit risk and related fixed-income risks.
• Default Spread
  An in-depth explanation of Default Spread, a specific type of credit spread that focuses on default risk differences, including types, examples, and significance in finance.
• G-Spread
  Bond spread measure comparing a bond's yield with the yield of a government bond of similar maturity.
• Nominal Spread: Analyzing Yield Differences in Bonds
  Understanding Nominal Spread: Difference between a bond's yield and a Treasury bond yield of similar maturity, not accounting for the time structure of interest rates.
• Option-Adjusted Spread
  Fixed-income spread measure that removes embedded-option value so callable or prepayable bonds can be compared more fairly.
• Z-Spread
  Fixed-income spread measure that adds one constant spread to each point on the benchmark spot curve to match a bond's price.