Indicator info
The ICE BofA US Corporate Index Option-Adjusted Spread (OAS) measures the yield difference between US dollar-denominated investment-grade corporate bonds and risk-free US Treasury securities of comparable maturities. This market-cap-weighted index adjusts for embedded options to provide a pure reflection of credit risk for highly rated, blue-chip US companies. Fixed-income traders and macro strategists use this OAS as a real-time gauge of corporate health — a widening spread indicates investors are demanding a higher premium for corporate default risk, whereas a tightening spread reflects strong corporate balance sheets and high market confidence.