yield spread
noun [C]Definition
› (also yield gap) FINANCE the difference between the rates of interest on two different types of share, bond, etc.: yield spread between sth and sth Demand has narrowed the yield spread between high- and low-quality bonds. The positive yield gap between shares and index-linked gilts has widened.
› BANKING the difference between what banks pay to borrow money and what they charge for lending it: The yield spread is an economically significant predictor of real economic activity.
(Definition of yield spread noun from the Cambridge Business English Dictionary
© Cambridge University Press)
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