Option-adjusted spread (OAS)
Definition: [crh] (1) The spread over an issuer's spot rate curve, developed as a measure of the yield Definition: spread that can be used to convert dollar differences between theoretical value and market prices. (2) The cost of tDefinition: he implied call embedded in an MBS, defined as additional basis-yield spread. When addeDefinition: d to the base yield spread of an MBS without an operative call produces the option-adjusted spread.
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