spread a risk
61butterfly spread — The placing of two interdelivery spreads in opposite directions with the center delivery month common to both spreads. Chicago Board of Trade glossary Established by buying an at the money option, selling 2 out of the money options, and buying an …
62Specific risk — In finance, a specific risk is a risk that affects a very small number of assets. This is sometimes referred to as unsystematic risk . In a balanced portfolio of assets there d be a spread between general market risk and risks specific to… …
63basis risk — The risk to a holder of financial instruments that a change in prevailing interest rates will not affect the prices of or yields on similar instruments in exactly equal amounts. For example, an increase in prevailing interest rates might raise 3… …
64Swap Spread — The difference between the swap interest rate and the underlying benchmark government bond yield at any given maturity. The swap spread is seen as a barometer of risk appetite, and represents the premium investors exposure to future interest… …
65Reduced Spread — A reduction in the spread between the buy/bid and sell/ask price for a security, currency, or loan. In most cases, a reduction in the spread signifies that a financial institution will experience a decline in its profit margin that it earns on… …
66TED spread — Difference between U.S. Treasury bill rate and eurodollar rate; used by some traders as a measure of investor/trader anxiety. The New York Times Financial Glossary The difference between U.S. Treasury bill yields and yields for Euro deposit… …
67credit default spread — USA credit default spread, Also known as a credit default swap spread or a credit spread (or sometimes, simply, the spread). In derivatives, an amount, typically specified in basis points, above LIBOR that a …
68credit default swap spread — USA credit default spread, Also known as a credit default swap spread or a credit spread (or sometimes, simply, the spread). In derivatives, an amount, typically specified in basis points, above LIBOR that a …
69credit spread — USA credit default spread, Also known as a credit default swap spread or a credit spread (or sometimes, simply, the spread). In derivatives, an amount, typically specified in basis points, above LIBOR that a …
70Proportional Spread — A measure of a security s liquidity that is calculated by comparing the bid and ask prices quoted in the marketplace. The proportional spread is higher as liquidity decreases to compensate the dealer for the additional risk of creating a market… …
