EODHD Academy

Credit & Spreads

What you are paid for taking default risk — spreads and what they are made of, ratings, recovery, seniority, and reading credit as a market-wide risk barometer.

4 units · 16 lessons · 66 min read · plus hands-on practice, at your pace

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What exactly are you paid for when you buy a corporate bond?

What a Spread Pays For · 4 min read · practitioner

Start the first lesson

Unit 1 What a Spread Pays For

  1. What exactly are you paid for when you buy a corporate bond? 4 min
  2. What is a credit spread actually made of? 4 min
  3. How do you turn a default probability into basis points? 4 min
  4. Which spread number is actually being quoted? 4 min
Practice Check · Unit 1 A short check · cannot be failed Start

Unit 2 Ratings & Default

  1. What does a credit rating actually claim to measure? 5 min
  2. Why is one notch on the scale worth more than all the others? 4 min
  3. What happens to a bond when its rating changes? 4 min
  4. Who pays for a credit rating, and why does the market care? 4 min
Practice Check · Unit 2 A short check · cannot be failed Start

Unit 3 Seniority & Recovery

  1. Who gets paid first when a company runs out of money? 4 min
  2. How much of your money actually comes back after a default? 3 min
  3. What does a covenant actually buy a lender? 4 min
  4. Why do two bonds from the same company trade at different spreads? 4 min
Practice Check · Unit 3 A short check · cannot be failed Start

Unit 4 Spreads as a Market Signal

  1. Why does credit move in cycles? 4 min
  2. Why do spreads blow out all at once? 4 min
  3. What is a credit default swap, in plain language? 5 min
  4. What have you actually learned to read? 5 min
Practice Check · Unit 4 A short check · cannot be failed Start

Last Course exam

One exam, the whole course Unlocks when you have read all 16 lessons

Passing it earns the course certificate. It also counts toward the Analyst track (course 8 of 8): pass every course exam in a track to earn its track certificate.