Option-Adjusted Spread (OAS) is a crucial metric used in active management of fixed income portfolios to provide insights into the yield difference between a bond and a risk-free benchmark, adjusted ...

For well over a decade, the institutional municipal market has been dominated by high 5% bonds callable at 100 in year 10. The premium market price corresponding to the artificially high coupon ...

A municipal bond’s embedded call option allows the issuer of the bond to “call” (i.e., pay back) the debt at a date prior to the bond’s final maturity, which allows the issuer to reduce the cost of ...

Low options-adjusted spread (OAS) of IG bonds limits upside potential and increases downside risk, making them less attractive compared to US Treasury bonds. State taxes on corporate bond interest ...