That is what I originally thought, but if you look in the first exhibit, the callable bonds have lower OAS than the non-callable. So these would be putable bonds?
I’m not sure if that’s correct. I am seeing this: “For callable bonds, the option benefits the issuer (it allows him to buy back the bonds if rates go down, i.e. bond prices go up), hence OASOAS<z” id=“MathJax-Element-9-Frame” role=“presentation” style=“display: inline-block; position: relative;” tabindex=“0”>OAS<z
If they’re otherwise identical, the callable bond should have the same OAS as the straight bond (and the same OAS as an otherwise identical putable bond).
If the OASs are different, then at least one of them was calculated incorrectly.