Also referred to simply as the spread. An amount, typically specified in basis points (BPs) that is added to LIBOR or another benchmark, such as SOFR, for purposes of calculating periodic variable or floating payments under a financial contract such as a credit facility or derivatives contract. The spread represents the pricing of the credit risk of the borrower or counterparty by the lender or dealer. See, for example, in the context of credit default swaps (CDS), credit default spread.