Credit Spread Explained

Credit spread is the difference between the yield (return) of two different debt instruments with the same maturity but different credit ratings. In other words, it is the difference in returns due to different credit qualities.

Chapters:
00:00 - Intro
00:20 - Yield Curve
00:45 - The Credit Spread
01:07 - Credit Spreads Change

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To better understand how credit risk impacts the pricing of instruments like credit spreads, watch    • Credit Ratings for High-Yield Bonds E...   next, where we explain how ratings influence market perception and risk premiums.

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