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Spread over G-Sec

How much extra yield a bond offers over a government security of similar tenure.

Why spread matters

Spread over G-Sec isolates the credit and liquidity risk premium a bond carries, once the risk-free government rate is stripped out. Two bonds with the same YTM but different tenors can have very different spreads. The spread is what actually tells you how much extra you're being paid for taking on issuer-specific risk.