Spread

The yield difference between a bond and a benchmark, reflecting credit or liquidity risk.

In fixed income, spread refers to the additional yield a bond offers over a benchmark, typically a U.S. Treasury of comparable maturity. A corporate bond yielding 5 percent when the 10-year Treasury yields 4 percent has a 100 basis point spread. Wider spreads indicate more perceived risk.

The corporate bond's spread over Treasuries widened as investors grew worried about the company's finances.