Credit Curve
A credit curve is the relationship between credit risk premia (spreads) and maturity for a given issuer or credit index, typically shown as a plot of yields or spreads across different maturities. It reflects how investors require compensation for default risk and other credit-related factors as time to maturity increases.
Example: An analyst compares the 1-, 5-, and 10-year credit spreads of an issuer to assess the curve's steepness and what it implies about longer-term credit risk.
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