Gaussian State Description of Squeezed Light

We present a Gaussian state description of squeezed light generated in an optical parametric oscillator. Using the Gaussian state description we describe the dynamics of the system conditioned on homodyne detection on the output field. Our theory shows that the output field is squeezed only if observed for long enough times or by a detector with finite bandwidth. As an application of the present approach we consider the use of finite bandwidth squeezed light together with a sample of spin-polarized atoms to estimate a magnetic field.