Business and Personal Finance Dictionary

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• QUALITY SPREAD
  
  The difference in yield between a risk-free obligation, an obligation of the U. S. Treasury, and another obligation of similar maturity that has credit risk. This difference is expressed in basis points. The most common quality spread is the Treasury-Eurodollar spread (TED spread). Quality spreads are expressions of credit risk as yield differentials. See TED spread.
  
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