ICE BofA BB Emerging Markets Corporate Plus Index Option-Adjusted Spread
This dataset tracks ice bofa bb emerging markets corporate plus index option-adjusted spread over time.
Latest Value
2.83
Year-over-Year Change
-2.75%
Date Range
12/31/1998 - 8/5/2025
Summary
The ICE BofA BB Emerging Markets Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for corporate bonds in emerging markets rated BB. This metric provides crucial insights into global market sentiment and perceived risk for corporate debt 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 tracks the spread between emerging market corporate bonds and a benchmark risk-free rate, adjusted for embedded options. 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 BB-rated corporate bonds in emerging markets to a risk-free benchmark, with statistical adjustments for potential option-related variations.
Historical Context
Central banks, international financial institutions, and global investors use this index to evaluate economic stability and credit market conditions in emerging economies.
Key Facts
- Represents credit risk for BB-rated corporate bonds in emerging markets
- Provides insights into global market sentiment and economic conditions
- Used by investors to assess potential risks and opportunities in developing economies
FAQs
Q: What does a widening spread indicate?
A: A widening spread typically suggests increasing perceived risk in emerging market corporate bonds, potentially signaling economic challenges or market uncertainty.
Q: How often is this index updated?
A: The index is typically updated regularly, with most financial data providers offering daily or weekly updates to reflect current market conditions.
Q: Why are BB-rated bonds significant?
A: BB-rated bonds are considered 'speculative' or 'non-investment grade', representing a middle ground between high-risk and more stable corporate debt.
Q: How do investors use this index?
A: Investors use this index to make informed decisions about emerging market investments, assess potential risks, and compare credit market conditions across different regions.
Q: What limitations should be considered?
A: The index represents a specific segment of emerging market bonds and should be used in conjunction with other economic indicators for comprehensive analysis.
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Citation
U.S. Federal Reserve, ICE BofA BB Emerging Markets Corporate Plus Index Option-Adjusted Spread [BAMLEM3BRRBBCRPIOAS], retrieved from FRED.
Last Checked: 8/1/2025