If the interest-rate spread widened the company gained on the deal; if the spread narrowed, or turned negative, its losses grew exponentially and were theoretically unlimited.In this section From tsunamis to Typhoons Fat-tail attraction Marx, Mervyn or Mario?
This only reduces the projected growth rate, widens the projected deficit, spooks money markets, and increases the interest costs Spain has to pay to finance its debt.
The spread (excess interest rate) over government bonds widened by two-fifths of a percentage point.Investors may also be suffering from indigestion.
Reflecting now uncertainties about counterparty risks, the swap spreads on typical U.S. interest rate swap deals has widened from around 30 basis points over the past several months to nearly 85 basis points now — a level never seen before.
Interest rate spreads between Aaa-rated or Aa-rated municipalities and Baa and A-rated municipalities will widen out.
The spread narrows and widens over an interest rate cycle, but the company has always been profitable.
A stock price decline and a widening of interest rate spreads also eroded the effect of past rate cuts, the minutes said.
State regulators are widening their investigation into interest rate manipulation, pursuing wrongdoing at seven of the world's biggest banks.
For example, the company benefits from a widening spread between the interest rate it receives on its mortgage portfolio and the rate it pays on its debt, he said.
Second, the widening in its interest rate margin (the gap between what it charges for loans and its own costs to borrow) is largely about a reduction in the rates it has to pay to attract deposits (or to put it another way, this is about meagre returns for savers rather than higher interest rates for borrowers).
