The Advantages of Trading a Credit Spread

Operating a bank is you're just trading a spread, right? So it's like, okay, we're going to issue a loan with some sort of credit spread over what's determined to be risk fee rate. And ultimately, what's in like the credit spread portion, I would probably call like the piece of the loan where the banks actually not really making a ton of money. The market's actually pretty darn efficient from the, you know, pricing the credit spread reasonably correctly.

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