ICE BofA BBB Emerging Markets Corporate Plus Index Option-Adjusted Spread

BAMLEM2BRRBBBCRPIOAS • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

1.27

Year-over-Year Change

4.10%

Date Range

10/22/2021 - 8/5/2025

Summary

The ICE BofA BBB Emerging Markets Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for BBB-rated corporate bonds in emerging markets. This metric provides crucial insights into global market sentiment and perceived financial risk for developing economies.

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 yield investors require to hold emerging market corporate bonds compared to a risk-free benchmark. Economists and investors use it to assess credit market conditions, risk perception, and potential investment opportunities in developing economies.

Methodology

The spread is calculated by comparing the yield of BBB-rated emerging market corporate bonds to a benchmark Treasury rate, adjusted for embedded options and potential prepayment scenarios.

Historical Context

Financial analysts and policymakers use this index to evaluate global credit market conditions, assess emerging market financial health, and inform investment and risk management strategies.

Key Facts

  • Measures credit risk for BBB-rated emerging market corporate bonds
  • Provides insights into global market sentiment and risk perception
  • Used by investors and economists to assess financial market conditions

FAQs

Q: What does a widening spread indicate?

A: A widening spread suggests increasing perceived risk in emerging market corporate bonds, potentially signaling economic challenges or reduced investor confidence.

Q: How do changes in this spread impact investment decisions?

A: Investors use spread changes to assess potential returns and risks in emerging market corporate bonds, adjusting their portfolio strategies accordingly.

Q: What factors influence this spread?

A: Global economic conditions, geopolitical events, commodity prices, and individual country economic performance can significantly impact the spread.

Q: How frequently is this index updated?

A: The index is typically updated daily, providing real-time insights into emerging market corporate bond market conditions.

Q: What rating does this index focus on?

A: The index specifically tracks BBB-rated corporate bonds, representing a moderate credit risk category in emerging markets.

Related Trends

Citation

U.S. Federal Reserve, ICE BofA BBB Emerging Markets Corporate Plus Index Option-Adjusted Spread [BAMLEM2BRRBBBCRPIOAS], retrieved from FRED.

Last Checked: 8/1/2025