Option-adjusted spread (OAS)

(1) The spread over an issuer's spot rate curve, developed as a measure of the yield spread that can be used to convert dollar differences between theoretical value and market price. (2) The cost of the implied call embedded in a MBS, defined as additional basis-yield spread. When added to the base yield spread of an MBS without an operative call produces the option-adjusted spread. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Option Adjusted Spread - OAS — Mainly used for fixed income products, OAS measures the yield spread that is not directly attributable to the security s characteristics. This is a measurement tool for evaluating price differences between similar products with different embedded …   Investment dictionary

  • 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 discount a security payment to match its market price. OAS is hence model dependent. This concept can be applied …   Wikipedia

  • Option adjusted spread — (OAS) is the flat spread over the treasury yield curve required to discount a security payment to match its market price. This concept can be applied to mortgage backed security (MBS), Options, Bonds and any other interest rate… …   Wikipedia

  • option-adjusted spread — ( OAS) (1) A measurement of the return provided to an investor from a financial instrument that is either an option or that includes an option. The option adjusted spread calculations break up a security into separate cash flows. Each of those… …   Financial and business terms

  • Option-adjusted spread — El Option adjusted spread (traducción literal del inglés, spread ajustado a opciones), conocido también simplemente como OAS, es la diferencia de tasas de interés que debe ser agregada a la curva soberana en los modelos de determinación de… …   Wikipedia Español

  • OAS — option adjusted spread (OAS) (1) A measurement of the return provided to an investor from a financial instrument that is either an option or that includes an option. The option adjusted spread calculations break up a security into separate cash… …   Financial and business terms

  • OAS — or Oas may refer to: Organization of American States, an international organization of the Americas. Ohio Auction School, an auction school in Ohio, USA. Old Age Security, a social security payment available to most Canadians aged 65 or older.… …   Wikipedia

  • OAS — puede referirse a: La Organización de Estados Americanos en sus siglas en inglés (Organization of American States). La Organisation de l Armée Secrète ( Organización del Ejército Secreto ), una organización armada clandestina francesa dedicada a… …   Wikipedia Español

  • OAS — Oracle Application Server (Computing » Networking) ** Organization of American States (Governmental » Military) * Organization of American States (Academic & Science » Ocean Science) * Organization of American States (Business » International… …   Abbreviations dictionary

  • Fixed income attribution — refers to the process of measuring returns generated by various sources of risk in a fixed income portfolio, particularly when multiple sources of return are active at the same time. For example, the risks affecting the return of a bond portfolio …   Wikipedia

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