Generic credit spread

Generic credit spread

Refers to the corporate bond spread for a particular credit rating and expiry. For example, 10-year single A corporates were priced or trading at 130 basis points above Treasuries last night, or said differently, 130 is the generic credit spread for 10-year single A corporates.

Generic Credit Spread

The difference in yield between two debt securities with the same features except riskiness. That is, the generic credit spread is the difference between a yield on a debt security with a given credit rating and the yield on another with the same coupon rate and maturity but a different credit rating. In all cases, the riskier debt security will have a higher yield. It is also simply called a credit spread. See also: Risk premium.