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Universal Kriging can be seen as a point interpolation, which requires a point map as input and which returns a raster map with estimations and optionally an error map. Universal Kriging is a variant of the Ordinary Kriging operation: Universal Kriging is Kriging with a local trend. The local trend or drift is a continuous and slowly varying trend surface on top of which the variation to be interpolated is superimposed.
DEFINITION of 'Zero-Volatility Spread-Z-spread'. The constant spread that will make the price of a security equal to the present value of its cash flows when added to the yield at each point on the spot rate Treasury curve where a cash flow is received.he Z-spread is also known as a static spread.