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Credit spread |
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Credit spreadApplies to derivative products. Difference in the value of two options, when the value of the one sold exceeds the value of the one bought. One sells a "credit spread." Antithesis of a debit spread Related: Quality spread.Credit spreadA spread strategy that increases the account's cash balance when it is established. A bull spread with puts and a bear spread with calls are examples of credit spreads.Similar MatchesFull faith and creditFull faith and creditEffectively a guarantee of payment of interest and repayment of principal of a bond issued by a government authority. Credit ratingCredit ratingA rating used by banks, insurance companies, mortgage companies and other financial institutions making loans which they use to judge an individual or company's credit worthiness.Depending on how many points the applicant gets when his/her personal details are run through the rating system, the financial institution will either accept or reject the risk.Financial institutions rely on highly computerised credit rating systems, and co-operate with each other in providing details of bad credit risks. Hence the concept of the 'black list'. Credit unionCredit unionNonprofit cooperative organizations that provide banking and financial services, including mortgages, home improvement loans and home equity loans, to their members. Bank creditBank creditThe maximum credit an individual may secure from his/her bank. Revolving credit agreementRevolving credit agreementA legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period. Further SuggestionsClose end creditCredit history Credit checks Credit Terms Eurocredit market children's tax credit unified tax credit Credit reference agency Nonaccredited investor Credit averse Letter of credit (LOC) Creditor nation Crediting rate Credit union Federal credit agencies credit clearing Credit rating Time Letter of Credit Credit Credit quality Credit insurance Domestic credit National Credit Union Administration Open end credit Federal Farm Credit Bank |
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