Option-Adjusted Spread (OAS)

Option-Adjusted Spread (OAS)
Yield spread between two different fixed income securities with embedded options. For calculations the embedded options are not factored in. Used with derivatives such as MBSs. OAS calculation may differ across models. Generally defined as Yield spread minus spread due to the presence of options.

Random Finance Terms for the Letter O

  • Option Writer
  • Option-Adjusted Spread (OAS)
  • Options Contract
  • Options Contract Multiple
  • Options on Futures
  • Options on Physicals
  • Organized Exchange
  • Original Face Value
  • Original Issue Discount Debt (OID Debt)
  • Origination Fee