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That spread has widened significantly, and is now more than 1.4 percentage points.
PIMCO is looking to make profits by picking up and holding debt whose spread has widened further than it should have in the general conflagration.
He analogized it to the sports world, where the salary spread has widened between star players and others on the team.
That spread has widened over the last six months as investors rushed headlong into Treasuries, driving down their yields in the process.
The numbers work this way: We add the amount the spread has widened on top of the Treasury yield for each point on the maturity spectrum.
Similar(55)
By late July, that spread had widened to 240 points, reflecting growing concern about these investments.
The spread had widened considerably in recent weeks as investors have become more risk averse, helping to drive up the mortgage interest rates that lenders charge home buyers.
But traders trying to buy protection against a further widening of these spreads say that they paid 200 to 400 basis points over Libor last February — and that the spread had widened to 1,500 points by August.
By Oct. 22, the Wal-Mart bond's spread had tightened to 62, but the J.C. Penney issue's spread had widened to 175.
This gap has widened sharply.
This year the gap has widened.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com