MoneyGlossary.com
Home  

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.

<< Go back