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Risikoaufschlag

risk premium

noun rih-ZEE-koh-owf-shlahk Rare

Also means

credit spread

Usage Note

Risikoaufschlag (also Risikoprämie) is the additional interest rate a borrower pays above the risk-free rate to compensate lenders for default risk. Widening Risikoaufschläge on corporate bonds indicate rising market nervousness about credit quality.

Examples

"In der Finanzkrise stiegen die Risikoaufschläge für Staatsanleihen der Peripherieländer stark an."

Natural Translation

During the financial crisis, risk premiums on peripheral countries' government bonds rose sharply.

Literal Translation

In the financial-crisis rose the risk-premiums for government-bonds of-the peripheral-countries strongly.

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