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.

Ideas

Corporate Credit Conditions Part 1 Since credit has far greater potential to create systemic issues than does equity, corporate credit conditions are much more important to the Federal Reserve (Fed) than changes in equity prices. If you have interest in macro, monitoring and understanding the basics of corporate credit is a must have

by CMT_Association

See all ideas

ICE BofA US Corporate Index Option-Adjusted Spread

Indicator info

Related indicators

Ideas﻿

Ideas