What metric from Moody's Analytics can be usedto assess the attractiveness of a bond's spread perunit of expected loss?

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Moody's Analytics uses its "R8isk@based strategy gamma" to assess the attractiveness of a bond's spread per unit of expected loss. Gamma in the risk-based strategy is a measure of a bond's spread per unit of loss because the numerator is a spread measure that adjusts for a bond's optionality and the denominator is the expected loss.In equation form, we have:
Risk@based strategy gamma =
where
OAS = option-adjusted spread
EDF = expected default frequency
LGD = loss given default

For its valuation-based strategy, Moody's Analytics calculates the FVS, which is the difference between the market OAS minus its modeled spread. The difference is then put on a per unit loss basis by dividing by the bond's expected loss. That valuation-based measure, also referred to as gamma, is then
Valuation@based strategy gamma =
The higher the gamma value as computed for either strategy, the more attractive the bond. Notice that if a bond is fairly valued based on Moody's Analytics estimated FVS model, then gamma is zero.

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