ICE BofA AA US Corporate Index Option-Adjusted Spread
BAMLC0A2CAA • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.47
Year-over-Year Change
6.82%
Date Range
10/22/2021 - 8/5/2025
Summary
The ICE BofA AA US Corporate Index Option-Adjusted Spread measures the additional yield investors demand for holding AA-rated corporate bonds compared to risk-free Treasury securities. This metric provides critical insight into corporate credit market conditions and perceived economic risk.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This spread represents the risk premium for high-quality corporate debt, reflecting market sentiment about corporate financial health and broader economic conditions. Economists and investors use it as a key indicator of credit market stress and potential economic challenges.
Methodology
The spread is calculated by comparing the yield of AA-rated corporate bonds to comparable U.S. Treasury securities, adjusted for embedded options and potential call features.
Historical Context
Central banks and financial analysts use this index to assess corporate credit market conditions and potential signals of economic stress or stability.
Key Facts
- Represents yield difference between AA-rated corporate bonds and Treasury securities
- Indicates market perception of corporate credit risk
- Widely used by economists and investors as a economic health indicator
FAQs
Q: What does a widening spread indicate?
A: A widening spread typically suggests increasing market uncertainty and higher perceived corporate credit risk. It can signal potential economic challenges or reduced investor confidence.
Q: How often is this index updated?
A: The ICE BofA Index is typically updated daily, providing real-time insights into corporate bond market conditions.
Q: Why are AA-rated bonds significant?
A: AA-rated bonds represent high-quality corporate debt with strong credit ratings, making them a reliable indicator of corporate financial health.
Q: How do policymakers use this index?
A: Central banks and economic policymakers monitor this spread to assess overall economic conditions and potential credit market stress.
Q: What are the limitations of this index?
A: The index focuses specifically on AA-rated bonds and may not fully capture risks across all corporate credit segments or economic conditions.
Related Trends
10.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB10Y6M
25-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB25YR
ICE BofA US Emerging Markets Liquid Corporate Plus Index Effective Yield
BAMLEMCLLCRPIUSEY
79.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB79Y6M
ICE BofA High Grade US Emerging Markets Liquid Corporate Plus Index Effective Yield
BAMLEMHGHGLCRPIUSEY
99-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB99YR
Citation
U.S. Federal Reserve, ICE BofA AA US Corporate Index Option-Adjusted Spread [BAMLC0A2CAA], retrieved from FRED.
Last Checked: 8/1/2025