How do you say “spread” in Italian? In Italian we say “spread” (lo spredde)

Italian newspapers and TV always mention the “spread” (read “lo spredde” since Italian words starting with “sp” need the article “lo” and not “il”.). I understand that “spread” measures a relation between the Italian BTP and the German Bund. Since I heard the word spread for the first time some months ago, this value has been in a range between 300 and 500, for example this article of the 12th August reports a spread of 431.  Can it be that the German Bund is 400 times more valuable than the Italian BTP? I do not understand properly but I understand that I do not understand exactly what the spread is as I tried to explain to a Spanish friend yesterday and I did not manage. She said she has not heard this concept in Spain.

Now I have not been living in Italy for at least 15 years. I have no formal education in economy. So it may be my fault. But why do Italian media have to use words and concepts I do not understand? How many Italian persons do understand “(lo spredde)” and the economic situation of the country?

2 thoughts on “How do you say “spread” in Italian? In Italian we say “spread” (lo spredde)”

  1. Mi risulta che lo “spread” sia un parametro finanziario misurato in “basic points”; 400 basic points equivalgono a 4%. La differenza tra i rendimenti dei due titoli e’ quindi pari al 4% e non a 400 volte.
    Se un BOT ad esempio “rende” il 5% il Bund rendera’ l’ 1%.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s