All-in Yield
The total yield to maturity, incorporating both the risk-free rate and credit spread.
In bond markets, 'all-in' refers to the total or comprehensive level. An all-in yield is the bond's complete yield to maturity — the risk-free benchmark rate plus the credit spread. For example, if 10Y Treasuries yield 4.0% and a corporate bond trades at +200bp, the all-in yield is 6.0%. This contrasts with quoting spreads alone (which isolate credit risk) or Treasury yields (which isolate rate risk). The all-in yield captures both components in a single number, making it the actual discount rate used to price the bond's cash flows. In pricing models, the all-in yield can be input directly or constructed by adding a benchmark yield and a spread.
Formula
Variables
| y_{effective} | Effective yield for discounting (decimal) |
| y_{UST} | Interpolated UST benchmark yield (decimal) |
| s | Credit spread in basis points |
Assumptions
- UST benchmark matches bond maturity via interpolation
- Spread applied as parallel shift to all cashflows
- Periodic compounding (not continuous)
vs. Industry Tools
Bloomberg ASW — Asset swap spread may differ; uses different calculation