bank of america merril lynch high yield option adjusted spread (oas) is the quick look at the markets inclination to absorb risk
the higher the yield the less the appetite. the lower the yield the greater the appetite. the yield gets to low and the market believes in oz
the oas has ranged from a low of 3 to a high of 20 (lehman) and was lounging at 3.5 until the first week of august since it has popped to 4 with all the moving averages turning as well
the high yield since 2008 has been roughly 8 % (twice from here) and the average running at 6
this is the worm that will turn first when big capital replaces yield with cash
oas st louis fed
plus other neat anecdotal evidence
the higher the yield the less the appetite. the lower the yield the greater the appetite. the yield gets to low and the market believes in oz
the oas has ranged from a low of 3 to a high of 20 (lehman) and was lounging at 3.5 until the first week of august since it has popped to 4 with all the moving averages turning as well
the high yield since 2008 has been roughly 8 % (twice from here) and the average running at 6
this is the worm that will turn first when big capital replaces yield with cash
oas st louis fed
plus other neat anecdotal evidence
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