{"product_id":"introduction-to-option-adjusted-spread-analysis-isbn-9781576602416","title":"Introduction to Option-Adjusted Spread Analysis","description":"Top traders, investors, and analysts agree that one method, option-adjusted spread (OAS) analysis, is the most useful way to compare and value securities with options. Nearly every day the bond market figures out a new way to structure securities, most of which involve options.\u003cbr\u003e \u003cbr\u003e This book explains OAS analysis in plain English, presenting each step in the method clearly and concisely. Topics covered include:  \u003cul\u003e \u003cli\u003eWhy yield-based analysis breaks down for nonbullet bonds\u003c\/li\u003e \u003cli\u003eHow to model put and call provisions as embedded options\u003c\/li\u003e \u003cli\u003eHow to distinguish the intrinsic and time components of option value\u003c\/li\u003e \u003cli\u003eHow to model interest-rate volatility, future interest rates, and future bond prices\u003c\/li\u003e \u003cli\u003eHow to calculate option-free price and yield\u003c\/li\u003e \u003cli\u003eHow to estimate the \"fair value\" of a bond\u003c\/li\u003e \u003cli\u003eHow to calculate implied spot and forward rates\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003cbr\u003e Salespeople, traders, and investors will want to read this book and keep it on their desks.\u003c\/p\u003e  Foreword  (Peter Wilson).\u003cbr\u003e \u003cbr\u003e Introduction: Why OAS Analysis?\u003cbr\u003e \u003cbr\u003e \u003cb\u003ePART ONE.\u003c\/b\u003e Yield Analysis versus OAS Analysis. \u003cbr\u003e \u003cbr\u003e CHAPTER 1. Fatal Flaws in Traditional Yield Calculations  \u003cbr\u003e \u003cbr\u003e CHAPTER 2. The Bond as a Portfolio.  \u003cbr\u003e \u003cbr\u003e \u003cb\u003ePART TWO.\u003c\/b\u003e Valuing Options. \u003cbr\u003e \u003cbr\u003e CHAPTER 3. Intrinsic Value. \u003cbr\u003e \u003cbr\u003e CHAPTER 4. Time Value. \u003cbr\u003e \u003cbr\u003e \u003cb\u003ePART THREE.\u003c\/b\u003e Modeling Interest Rates.\u003cbr\u003e \u003cbr\u003e CHAPTER 5. Implied Spot and Forward Rates. \u003cbr\u003e \u003cbr\u003e CHAPTER 6. Beyond the Lognormal Model. \u003cbr\u003e \u003cbr\u003e CHAPTER 7. Volatility and the Binomial Tree. \u003cbr\u003e \u003cbr\u003e CHAPTER 8. Matching the Model to the Market. \u003cbr\u003e \u003cbr\u003e \u003cb\u003ePART FOUR.\u003c\/b\u003e Measuring the Spread. \u003cbr\u003e \u003cbr\u003e CHAPTER 9. Bullet Bonds. \u003cbr\u003e \u003cbr\u003e CHAPTER 10. Nonbullet Bonds. \u003cbr\u003e \u003cbr\u003e \u003cb\u003ePART FIVE.\u003c\/b\u003e Applications of OAS Analysis. \u003cbr\u003e \u003cbr\u003e CHAPTER 11. Evaluating Performance. \u003cbr\u003e \u003cbr\u003e CHAPTER 12. Estimating Fair Value.  \u003cp\u003eGlossary.\u003cbr\u003e Index.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eTom Miller,\u003c\/b\u003e who revised and expanded this edition, was head of the fixed income and derivatives sales team at Bloomberg L.P. in New York. He teaches at the New York University School of Continuing and Professional Studies. Prior to joining Bloomberg, he traded in the money markets for eleven years.\u003c\/p\u003e  \u003cp\u003e\u003ci\u003eImagine this: you’re offered two corporate bonds from similar issuers with identical credit ratings. Both bonds have 6 percent coupons and ten-year final maturities. The first is noncallable and priced at $98.00. The second is callable at par in seven years and priced at $97.50. Which bond is the better deal? Not the one most people would think...\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eTop traders, investors, and analysts agree that one method, option-adjusted spread (OAS) analysis, is the most useful way to compare and value securities with options. Nearly every day the bond market figures out a new way to structure securities, most of which involve options.\u003c\/p\u003e \u003cp\u003eThis book explains OAS analysis in plain English, presenting each step in the method clearly and concisely. Topics covered include:\u003c\/p\u003e \u003cul\u003e \u003cli\u003e\u003ci\u003eWhy yield-based analysis breaks down for nonbullet bonds\u003c\/i\u003e\u003c\/li\u003e \u003cli\u003eHow to model put and call provisions as embedded options\u003c\/li\u003e \u003cli\u003eHow to distinguish the intrinsic and time components of option value\u003c\/li\u003e \u003cli\u003eHow to model interest-rate volatility, future interest rates, and future bond prices\u003c\/li\u003e \u003cli\u003eHow to calculate option-free price and yield\u003c\/li\u003e \u003cli\u003eHow to estimate the “fair value” of a bond\u003c\/li\u003e \u003cli\u003eHow to calculate implied spot and forward rates\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eSalespeople, traders, and investors will want to read this book and keep it on their desks.\u003c\/p\u003e","brand":"Bloomberg Press","offers":[{"title":"Default Title","offer_id":47989463941349,"sku":"NP9781576602416","price":39.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781576602416.jpg?v=1761784204","url":"https:\/\/k12savings.com\/products\/introduction-to-option-adjusted-spread-analysis-isbn-9781576602416","provider":"K12savings","version":"1.0","type":"link"}