Intermarket Sector Spread
Spreads tend to narrow or tighten when the economy is growing; spreads tend to widen when the economy is slowing down, when bond interest rates drop. Other factors that can affect the intermarket sector spread include the relative credit risk of both bonds, the presence of embedded options (that add value to the issue), the liquidity of the issues, and the tax liabilities of the interest received by investors. In comparison, an intramarket sector spread is the difference in yields between two issues within a market sector, such as two corporate bonds.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Intermarket sector spread — The spread between the interest rate offered in two sectors of the bond market for issues of the same maturity. The New York Times Financial Glossary … Financial and business terms
intermarket sector spread — The spread between the interest rate offered in two sectors of the bond market for issues of the same maturity. Bloomberg Financial Dictionary … Financial and business terms
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Межрыночный секторный спрэд — спрэд между процентными ставками, предлагаемыми в двух секторах рынка облигаций по бумагам с одинаковым сроком погашения. По английски: Intermarket sector spread См. также: Спрэд Финансовый словарь Финам … Финансовый словарь
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