glossario

In finance, spread is a generic term that indicates a difference between the prices, yields, or interest rates of two financial instruments. More specifically, the spread on Italian government bonds is the difference between the yield of an Italian government security, a BTP with a 10-year maturity, and the yield of a German government security, a Bund with the same maturity. It is a measure of the risk associated with investing in Italian government securities, and of the reliability of our country: the higher the spread, the greater the risk. In the case of mortgages, the spread is the difference between the actual interest rate applied and the benchmark rate (e.g. Euribor or Eurirs).