ICE BofA BBB US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread
BAMLEM2RBBBLCRPIUSOAS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.22
Year-over-Year Change
0.83%
Date Range
11/15/2021 - 8/28/2025
Summary
The ICE BofA BBB US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for BBB-rated corporate bonds in emerging markets. This metric provides critical insights into market perception of credit risk and overall economic conditions in 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 index represents the additional yield investors require to hold emerging market corporate bonds compared to risk-free benchmark rates. Economists and investors use this spread as a key indicator of financial market stress and potential economic volatility in emerging markets.
Methodology
The spread is calculated by comparing the yield of BBB-rated corporate bonds to a benchmark Treasury rate, with option adjustments to account for embedded financial instruments.
Historical Context
Central banks and financial institutions use this spread to assess credit market conditions, investment risk, and potential economic interventions in emerging markets.
Key Facts
- Measures credit risk premium for BBB-rated emerging market corporate bonds
- Reflects investor sentiment and economic conditions in developing markets
- Helps investors and policymakers assess financial market stress
FAQs
Q: What does a widening spread indicate?
A: A widening spread suggests increasing perceived risk in emerging markets, potentially signaling economic uncertainty or reduced investor confidence.
Q: How often is this index updated?
A: The index is typically updated daily, providing real-time insights into market conditions and credit risk.
Q: Why are BBB-rated bonds significant?
A: BBB-rated bonds represent investment-grade securities that are considered medium-risk, making them important indicators of broader market health.
Q: How do investors use this spread?
A: Investors use this spread to make portfolio allocation decisions, assess risk, and compare potential returns across different emerging markets.
Q: What limitations exist in this index?
A: The index focuses on specific bond ratings and may not capture the full complexity of emerging market financial conditions.
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Citation
U.S. Federal Reserve, ICE BofA BBB US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread [BAMLEM2RBBBLCRPIUSOAS], retrieved from FRED.
Last Checked: 8/1/2025