INTERMARKET SECTOR SPREAD

Difference between the interest rate in two fixed-income securities of the same maturity but comes from different investment sectors. For instance, spreads in the bond market frequently occur between corporate bonds and government bonds who have the similar maturity. The American bond market belongs to issuer-based sectors including the US government, US government agency, municipal, mortgage, corporate, asset-backed securities, and foreign sectors. For example, a spread between AA bonds and BBB bonds.