# Credit spread arbitrage

- Canonical URL: https://www.gerhardmerk.de/credit-spread-arbitrage
- Post ID: 591499
- Modified: 2023-07-25T20:59:19+00:00
- Language: en

## Definition

Transactions, especially those conducted by hedge funds, in which such highly creditworthy securities or derivatives are purchased whose credit risk appears to be overvalued in the market. The maturity risk is hedged by buying similar securities. - If it is believed that the credit risk of an issuer is undervalued, they are sold out of the fund's portfolio. - See bond, hedge fund strategies, counter speculation theory, asset value investors. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1