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Option Adjusted Spread - OAS

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Dictionary Says

Definition of '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.
Investopedia Says

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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