ICE BofA 15+ Year US Corporate Index Option-Adjusted Spread
This dataset tracks ice bofa 15+ year us corporate index option-adjusted spread over time.
Latest Value
0.98
Year-over-Year Change
0.00%
Date Range
12/31/1996 - 8/8/2025
Summary
The ICE BofA 15+ Year US Corporate Index Option-Adjusted Spread measures the average difference in yield between long-term corporate bonds and comparable U.S. Treasury securities, accounting for embedded options. This metric provides critical insight into corporate credit risk and market sentiment across different economic conditions.
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 additional compensation investors require for holding corporate bonds with maturities over 15 years compared to risk-free government securities. Economists and financial analysts use this indicator to assess corporate credit market health, potential default risks, and broader economic stress levels.
Methodology
The spread is calculated by comparing the yield of long-term corporate bonds to Treasury securities of similar maturity, with statistical adjustments made for potential embedded bond options.
Historical Context
Central banks, investment managers, and policymakers use this spread as a key indicator of corporate financial conditions and potential economic downturn risks.
Key Facts
- Measures credit risk for long-term corporate bonds
- Wider spreads indicate higher perceived market risk
- Accounts for potential bond option characteristics
FAQs
Q: What does a rising corporate bond spread indicate?
A: A rising spread typically suggests increasing market uncertainty and higher perceived corporate default risks. Investors demand greater compensation for holding corporate bonds during periods of economic stress.
Q: How often is this index updated?
A: The ICE BofA Corporate Index is typically updated daily, reflecting real-time changes in corporate bond market conditions and investor sentiment.
Q: Why are option-adjusted spreads important?
A: Option-adjusted spreads provide a more nuanced view of bond yields by accounting for potential embedded options that can affect bond valuation and risk assessment.
Q: How do policymakers use this spread?
A: Central banks and economic policymakers monitor this spread to gauge overall corporate financial health and potential systemic economic risks.
Q: What are the limitations of this index?
A: The index focuses on long-term corporate bonds and may not fully represent short-term credit market dynamics or specific sector variations.
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Citation
U.S. Federal Reserve, ICE BofA 15+ Year US Corporate Index Option-Adjusted Spread [BAMLC8A0C15PY], retrieved from FRED.
Last Checked: 8/1/2025