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Spread Duration

Approximates price sensitivity to changes in credit spread.

Formula

Spread duration ≈ -ΔP/P ÷ Δs

Variables: P price; Δs credit-spread change

What it means

Approximates price sensitivity to changes in credit spread.

Example

A spread duration of 4 implies about a 4% price decline for a 100 bp spread widening, before convexity effects.

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.