spread duration understand, example, cannot, could

willsucceed

what is spread duration?

I know spread,and I know duration
but I cannot understand spread duration

could anyone give me an example to clarify?

infinitybenzo

Yes, it's the price sensitivity of a non-treasury bond to 100 bps change in spread (over treasuries).

Iginla2011

It's the same as portfolio duration when there are non-treasuries in the portfolio.

Analti_Calte

If you know duration, just subtitute "Interest Rate" with "Spread over a treasury of the same maturity".

Note the LOS only states "Explain the importance of spread duration". So don't get too bogged down by it.