A credit forward agreement specifies a credit spread on a benchmark U.S.Treasury bond.

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A credit forward agreement is a financial contract that allows parties to manage exposure to credit risk, not specifically to set a credit spread on a U.S. Treasury bond. It typically involves the future delivery of a credit instrument or cash settlement based on the credit performance of a reference asset, rather than setting a spread on a Treasury bond.

A Credit Forward Agreement Specifies a Credit Spread on a Benchmark