Which term refers to the yield spread between a non-benchmark bond and a benchmark bond?

The yield spread between a non-benchmark bond and a benchmark bond is referred to as the benchmark spread. This term specifically focuses on comparing the yields of a particular bond that is not considered a benchmark against a standard or benchmark bond, which is typically a government bond or another high-quality and highly liquid security.

The benchmark spread indicates the additional yield that investors require to hold the non-benchmark bond as compensation for additional risks associated with it, such as credit risk or liquidity risk. Understanding this spread is crucial for investors, as it provides insights into the relative value of non-benchmark bonds and helps assess the risk-return profile of various investment options.