ICE BofA Single-A US Corporate Index Option-Adjusted Spread
This dataset tracks ice bofa single-a us corporate index option-adjusted spread over time.
Latest Value
0.68
Year-over-Year Change
3.03%
Date Range
12/31/1996 - 8/5/2025
Summary
The ICE BofA Single-A US Corporate Index Option-Adjusted Spread measures the additional yield investors demand for holding Single-A rated corporate bonds compared to risk-free Treasury securities. This metric provides critical insight into corporate credit market conditions and perceived corporate financial 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 associated with Single-A rated corporate bonds, reflecting market perceptions of credit risk and overall economic health. Economists and investors use this indicator to assess corporate borrowing costs and potential economic stress in the credit markets.
Methodology
The spread is calculated by comparing the yield of Single-A rated corporate bonds to comparable U.S. Treasury securities, with statistical adjustments to account for embedded options and complex bond features.
Historical Context
Financial analysts and policymakers use this spread as a key indicator of corporate financial conditions, credit market sentiment, and potential economic turning points.
Key Facts
- Represents credit risk for Single-A rated corporate bonds
- Wider spreads indicate higher perceived market risk
- Important leading indicator for economic conditions
FAQs
Q: What does a widening spread indicate?
A: A widening spread suggests increasing market uncertainty and higher perceived corporate credit risk. This typically occurs during economic downturns or periods of financial stress.
Q: How do investors use this spread?
A: Investors use this spread to assess relative bond valuations and make informed decisions about corporate bond investments. It helps in comparing risk-adjusted returns across different bond categories.
Q: How is the option-adjustment calculated?
A: The option-adjustment accounts for embedded bond features like call or put options that can affect the bond's yield and valuation. This provides a more accurate representation of the true credit spread.
Q: What makes Single-A bonds unique?
A: Single-A bonds represent a moderate credit rating, indicating moderate credit quality and lower default risk compared to lower-rated bonds. They offer a balance between risk and potential returns.
Q: How frequently is this data updated?
A: The ICE BofA indices are typically updated daily, providing real-time insights into corporate bond market conditions. The data is widely available through financial data providers and economic databases.
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Citation
U.S. Federal Reserve, ICE BofA Single-A US Corporate Index Option-Adjusted Spread [BAMLC0A3CA], retrieved from FRED.
Last Checked: 8/1/2025