• See Option Adjusted Spread Model.
| ||Embedded terms in definition|
| ||Option adjusted spread model|
Option adjusted spread
| ||Referenced Terms|
| ||Option adjusted spread: Abbreviated 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.|
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