what is a yield spread premium 
a yield spread premium is a type of compensation paid to mortgage brokers these individuals receive this fee from lenders when they give borrowers mortgage loans with interest rates that are higher than the lender s standard rate the yield spread premium doesn t include any additional costs that borrowers are typically responsible for such as commissions or other fees the bottom lineif you re a savvy investor or a fund manager you can figure out what the best investments are for you or your clients using different metrics including yield spreads this is the difference between two investments notably bonds with different maturities issuers credit ratings and risks you can also use yield spreads to figure out which bonds tend to be affordable or expensive 