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?
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%.
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grazie sei forte! hai salvato un emigrante ignorante 🙂
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