English ⇓ ⇒ Snippet WordPress The Spread meaning as a financial term:
European countries are referring to the german performance of their internal state obligations TITLES which are called: Bund and the related obligations issued in the other countries. We have in Italy the BTP
Just suppose you buy 10000 Euros of Bund obligations to be paid back in one year from the german Bundesbank and also suppose that the german sale price, we call that Asta, sets that at a rate of interest of 3%, well at the end of one year you will capitalize 10300 Euros back from BRD
Now if I do the same in Italy I might get 10650 Euros capitalized at the end
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