Option Adjusted Spread - OAS

What Does Option Adjusted Spread - OAS Mean?
Mainly used for fixed-income products, OAS measures the yield spread that is not directly attributable to the security's characteristics.

Investopedia explains Option Adjusted Spread - OAS
This is a measurement tool for evaluating price differences between similar products with different embedded options. A larger OAS implies a greater return for greater risks.

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Related Links

Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.
Advanced Bond Concepts: Duration - Bonds with higher duration carry more risk, making this measure an important one for investors to calculate.

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