OAS. The price of an option compared to the spot rate of Treasuries. The option-adjusted spread equates the present value of the underlying security's cash flows to the market price of the security.
Related information about option-adjusted spread:
- Option-adjusted spread - Wikipedia, the free encyclopedia
Option adjusted spread (OAS) is the flat spread which has to be added to the treasury yield curve in a pricing model (that accounts for embedded options) to ...
- Option Adjusted Spread (OAS) Definition | Investopedia
Mainly used for fixed-income products, OAS measures the yield spread that is not directly attributable to the security's characteristics.
- Explaining the Lehman Brothers Option Adjusted Spread of a ...
Feb 27, 2006 ... The option adjusted spread (OAS) is a measure of the credit risk in a callable (or putable) corporate bond and has been used by investors for ...
- Option-Adjusted Spread
Fixed income instruments are often described as trading at a spread over some benchmark yield. For example, a 10-year callable corporate bond might have a ...
- What is the difference between Option Adjusted Spread (OAS) and Z ...
Apr 22, 2012 ... I am preparing for the CFA level 2 exam, I got confused by the concept Z-spread and OAS. When a call option is added to a bond, since it is not ...
- RMTF - RMM Option Adjusted Spread Definition - Society of Actuaries
Option-adjusted spread (OAS) is the spread relative to a risk-free interest rate, usually measured in basis points (bp), that equates the theoretical present value ...
- Option Adjusted Spread - Financial Dictionary - The Free Dictionary
In fixed-income securities with embedded options, the yield spread between two securities calculated as if the embedded options do not exist. Different models ...
- Option-adjusted spread: Definition from Answers.com
Option-Adjusted Spread (OAS) Method used in calculating the relative value of a fixed-income security containing an Embedded Option , such as a borrower's.