The difference in the interest rate of two debt securities. QSD usually arises where two organizations with different level of credit worthiness have been involved in an interest rate swap. QSD is positive then the swap is considered favorable to both participants.
Related information about quality spread differential (QSD):
- Quality Spread Differential (QSD) Definition | Investopedia
In an interest rate swap, the difference between the interest rates of debt obligations offered by two parties of different creditworthiness that engage in the swap.
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Quality Spread Differential (QSD) arises during an interest rate swap in which two parties of different levels of creditworthiness experience different levels of ...
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Definition of quality spread differential (QSD): The difference in the interest rate of two debt securities. QSD usually arises where two organizations with different ...
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In order to determine if an interest rate swap makes sense for both parties, investors look at the Quality Spread Differential (QSD), a calculation that takes into ...
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Nov 20, 2011 ... What is a Quality Spread Differential (QSD)? Definition. •The Quality Spread Differential represents the potential gains from the swap that can ...
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Nov 26, 2011 ... Calculate the quality spread differential (QSD). b. Develop an interest rate swap in which both Alpha and Beta have an equal cost savings in ...