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Credit Spread

Measures yield compensation over a selected reference curve.

Formula

Credit spread = Credit yield - Reference yield

Variables: Credit yield; matched reference yield

What it means

Measures yield compensation over a selected reference curve.

Example

A corporate bond at 5.4% versus a matched government yield of 4.1% has a 130 bp spread.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.