Option Adjusted Spread Model is an approach whereby securities are evaluated by considering the implied option characteristics. Two key variables are interest rate and prepayment rate behavior. These models incorporate the average spread of the Mortgage Backed Security or CMO tranche to the treasury yield curve. The usual reason for differences in evaluations is due to assumptions and modeling efforts for prepayments.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). Option Adjusted Spread Model. Retrieved September 24, 2026, from http://smartdefine.org/option_adjusted_spread_model/definitions/1159803 |
| Chicago | Barry Goldsmith. 2010. "Option Adjusted Spread Model" http://smartdefine.org/option_adjusted_spread_model/definitions/1159803 (accessed September 24, 2026). |
| Harvard | Barry Goldsmith 2010, Option Adjusted Spread Model, Smart Define, viewed 24 September, 2026, <http://smartdefine.org/option_adjusted_spread_model/definitions/1159803>. |
| MLA | Barry Goldsmith. "Option Adjusted Spread Model" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/option_adjusted_spread_model/definitions/1159803> |