CoachA sovereign spread is the difference between the yield of one government’s bond and that of a benchmark government of the same currency and maturity, in the euro area usually Germany. Redenomination risk is the part of a spread that pays for the possibility that a bond is repaid in a new national currency worth less than the euro.
Quantitative Finance · Glossary
What is Sovereign spread and redenomination risk?
Also known as: sovereign spread · redenomination risk