Meaning 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 prices. (2) The cost of the implied call embedded in an 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
More terms such as Option-adjusted spread (OAS) in Dictionary O.
- Definition Odd-Lot Theory:
- Examples The theory that profits can be made by making trades contrary to odd-lot trading patterns, since odd-lot investors have poor timing. This theory is no longer popular option-adjusted spread (oas) definition.
- Definition Overnight Position:
- Examples A broker-dealer's position in a security at the end of a trading day option-adjusted spread (oas) explain.
- Definition Other Current Assets:
- Examples Value of noncash assets, including prepaid expenses and accounts receivable, due within one year option-adjusted spread (oas) what is.
- Definition Off-Board:
- Examples equity securities. Transacted away from a national securities exchange even though the stock itself is listed, such as on the NYSE, and instead of on the OTC market, a regional exchange, or in the option-adjusted spread (oas) meaning.
- Definition O:
- Examples Fifth letter of a Nasdaq stock symbol specifying that it is the company's second class of preferred shares option-adjusted spread (oas) abbreviation.
