spread risk vs credit risk credit

Muddahudda

spread risk vs credit risk: any relationship?

nannan66

Spread risk is the risk of deterioration in credit rating and therefore decrease in value of a bond due to spread rising. For example, if rating goes from BBB to BB the spread will go up.

Credit risk is the risk of default on what is owed.

zwjy

credit risk include default risk spread risk downgrade risk
lv1 already learn it
if you mean credit risk in risk management , it is counterparty can't pay due payment

cityboy

In order to hedge against spreads widening, long credit spread forward or purchase credit spread call.