Spread

Difference between a bid and an offer rate. More generally between one rate and another

REMARKS

The difference between the offer rate and the bid rate, since the offer rate Is always larger than the bid rate

The spread of a bond refers to the difference between the yield of the bond and the yield of a Treasury bond with a comparable maturity. Since the Treasury yield is considered risk-free, the spread reflects the risk premium of the bond. The spread is expressed in basis points (1/100th of 1 percent.).