ICE BofA BBB US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread
This dataset tracks ice bofa bbb us emerging markets liquid corporate plus index option-adjusted spread over time.
Latest Value
1.22
Year-over-Year Change
0.83%
Date Range
12/31/2003 - 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.
Related News
U.S. Treasury Yields Drop Amid Expectations of Rate Cuts
U.S. Treasury Yields Plummet as Rate Cuts Loom on the Horizon U.S. Treasury Yields are experiencing a significant decline, reaching a five-month low. This drop highlights emerging shifts in the financial landscape, particularly in the context of the 10-year bond rate. Central to this situation is the Federal Reserve's anticipated interest rate cuts, which are making investors reassess their strategies and could have far-reaching effects on the economy. As the financial markets react, understand
Unpredictability of Interest Rate Direction in the United States
Navigating the Unpredictability of Interest Rates Interest rates have turned into one of the most unpredictable elements in the American financial landscape. This unpredictability stems largely from the nuanced decisions of the Federal Reserve, often referred to as the Fed, whose policies ripple through financial markets, influencing borrowing costs for everyone from ambitious entrepreneurs to families securing mortgages. The web of economic indicators, which serves as the backbone for interest
U.S. S&P 500 Stock Movements: Paramount and Apple Surge
Apple and Paramount Stocks Bolster the S&P 500: Analyzing Market Movements The S&P 500 recently experienced a boost thanks to significant stock movements from Apple and Paramount. As a key indicator of the U.S. stock market, the S&P 500's rise reflects broader economic dynamics. Notably, Apple's stock benefited from the recent iPhone 17 launch, while Paramount's corporate strategies have also captured investor attention. These developments underscore the interconnected nature of market trends,
Impact of U.S. Treasury Yields Rise After Fed Rate Cut
The Impact of a Treasury Yield Rise on the U.S. Economy After a Fed Rate Cut The current rise in the 10-year Treasury bond rate has caught the attention of economists, investors, and policymakers alike. Treasury yields, particularly the 10-year Treasury bond rate, act as a key indicator of the economic outlook in the United States. They affect interest rates, the bond market, and expectations for inflation. Understanding their fluctuations can offer insight into financial markets and help guide
U.S. Housing Leader Relies on Fed Amid Profit Challenges
Navigating the Impact of Federal Reserve Policies on a Leading S&P 500 Housing Company The Federal Reserve's decisions often hold the key to the economic direction of entire industries. As a prime example, consider how these policies affect a major S&P 500 housing company currently grappling with profit declines. This scenario underscores the critical role of Federal Reserve actions, including adjustments to the effective Federal Funds Rate, in shaping corporate strategies amid financial diffic
Understanding the Federal Reserve's Dot Plot for Interest Rate Predictions
Unveiling the Federal Reserve Dot Plot: A Crucial Tool for Interest Rate Forecasting The Federal Reserve dot plot is a critical tool in understanding how the central bank projects future interest rates and shapes US monetary policy. By examining the dot plot, policymakers and economists gain insights into the anticipated direction of interest rates, guiding financial markets and influencing economic forecasts. Its significance is often highlighted during Federal Open Market Committee (FOMC) mee
Related Trends
Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
CPIAUCNS
Capacity Utilization: Total Index
TCU
Commercial and Industrial Loans, All Commercial Banks
TOTCI
Share of Foreign Born in Home Owners Loan Corporation (HOLC) Neighborhood A
RLMSHFBHOLCNA
Home Ownership Rate in Home Owners Loan Corporation (HOLC) Neighborhood C
RLMSHHORHOLCNC
Share of Foreign Born in Home Owners Loan Corporation (HOLC) Neighborhood C
RLMSHFBHOLCNC
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