ICE BofA AAA-A US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread

BAMLEM1RAAA2ALCRPIUSOAS • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.62

Year-over-Year Change

1.64%

Date Range

10/27/2021 - 8/8/2025

Summary

The ICE BofA AAA-A US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for high-quality emerging market corporate bonds. This metric provides crucial insights into market perception of credit risk and overall economic stability in emerging markets.

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 index represents the spread between emerging market corporate bonds and a benchmark risk-free rate, adjusted for embedded options. Economists use this spread to assess credit market conditions, investor sentiment, and potential economic risks in developing economies.

Methodology

The spread is calculated by comparing the yield of AAA-A rated emerging market corporate bonds to a risk-free benchmark, with statistical adjustments for embedded options.

Historical Context

Financial analysts and policymakers use this index to evaluate credit market conditions, assess investment risks, and make informed decisions about emerging market investments.

Key Facts

  • Measures credit risk premium for high-quality emerging market corporate bonds
  • Provides insights into market perception of economic stability
  • Helps investors assess potential risks in emerging markets

FAQs

Q: What does this index indicate about emerging markets?

A: The index reflects the credit risk and market confidence in emerging market corporate bonds, with wider spreads suggesting higher perceived risk.

Q: How do investors use this spread?

A: Investors analyze this spread to make informed decisions about potential investments in emerging market corporate bonds and assess overall market conditions.

Q: What factors can impact this spread?

A: Economic conditions, political stability, global market trends, and individual country risk profiles can significantly influence the spread.

Q: How frequently is this data updated?

A: The index is typically updated regularly, allowing for near-real-time tracking of emerging market credit risk conditions.

Q: What are the limitations of this index?

A: The index focuses on AAA-A rated bonds and may not fully represent the entire spectrum of emerging market corporate debt.

Related Trends

Citation

U.S. Federal Reserve, ICE BofA AAA-A US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread [BAMLEM1RAAA2ALCRPIUSOAS], retrieved from FRED.

Last Checked: 8/1/2025