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But in poor countries, this spread widens to alarming proportions.
When that spread widens it means that Treasuries are outperforming the other markets.
The spread widens when Gucci and other luxury-goods makers sell directly to the public and reap retail prices.
According to Mr. Edelen, these investors quickly trade an E.T.F.'s shares whenever the spread widens between its market price and per-share value.
Look back two years, and that spread widens to 59%.
When the spread widens, confidence in all these are at an ebb; as they get thinner it's the opposite.
Similar(49)
In the fourth quarter of 2008, that spread widened to more than 6 points.
At the height of the global credit crisis, the TED spread widened to more than 4.6 percentage points.
Austria had also seen its bond spread widen because of fears about its banks' exposure to Eastern Europe.
But from late 2008 through June 2009, when bailouts for large institutions became expected, this spread widened to an average of 0.78 percentage point.
"However, Trichet failed to deliver the bond purchase announcement, leading disappointment among traders and moderate spread widening".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com