# Credit Spread

*Markets & Instruments — Finicade finance glossary*

The extra yield a risky borrower must pay over a safe government bond, compensation for the chance of default. Spreads widen when markets get nervous and narrow when confidence returns — a real-time fear gauge.

**Related terms:** [Credit Risk](https://finicade.com/glossary/credit-risk), [Bond](https://finicade.com/glossary/bond), [Default](https://finicade.com/glossary/default), [Yield](https://finicade.com/glossary/yield)

**Taught in:** Charter Climb — Yield Curves, Duration & Risk

Source: https://finicade.com/glossary/credit-spread