Quality Spread Differential (QSD) arises during an interest rate swap in which two parties of different levels of creditworthiness experience different levels of interest rates of debt obligations. A positive QSD means that a swap is in the interest of both parties.
Read more about Quality Spread Differential: Example
Famous quotes containing the words quality, spread and/or differential:
“As the quality of water changes with the nature of the soil;
So will a man’s reason vary with the quality of his friends.”
—Tiruvalluvar (c. 5th century A.D.)
“All catches alight
At the spread of spring:
Birds crazed with flight
Branches that fling
Leaves up to the light”
—Philip Larkin (1922–1986)
“But how is one to make a scientist understand that there is something unalterably deranged about differential calculus, quantum theory, or the obscene and so inanely liturgical ordeals of the precession of the equinoxes.”
—Antonin Artaud (1896–1948)