ICE BofA B & Lower Emerging Markets Corporate Plus Index Option-Adjusted Spread

BAMLEM4BRRBLCRPIOAS • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.79

Year-over-Year Change

6.21%

Date Range

11/18/2021 - 9/1/2025

Summary

The ICE BofA B & Lower Emerging Markets Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for lower-rated corporate bonds in emerging markets. This metric provides critical insights into global financial market stress and investor risk perception.

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 rated B and lower compared to a benchmark risk-free rate, indicating the additional yield investors demand for holding riskier debt. Economists and investors use this spread as a key indicator of credit market conditions and potential economic volatility.

Methodology

The spread is calculated by comparing the option-adjusted yield of lower-rated emerging market corporate bonds to a risk-free benchmark, typically U.S. Treasury securities.

Historical Context

Financial analysts and policymakers use this spread to assess global credit market health, investment risk, and potential economic challenges in emerging markets.

Key Facts

  • Measures credit risk for lower-rated emerging market corporate bonds
  • Provides insight into global financial market stress
  • Helps investors assess risk in developing economies

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 market uncertainty.

Q: How do investors use this index?

A: Investors use this spread to evaluate potential investment risks and make informed decisions about emerging market corporate bond investments.

Q: What factors influence this spread?

A: Factors include global economic conditions, country-specific risks, corporate financial health, and international market sentiment.

Q: How frequently is this data updated?

A: The index is typically updated regularly, with most sources providing daily or weekly updates on the spread.

Q: What are the limitations of this index?

A: The index focuses on lower-rated bonds and may not fully represent the entire emerging market corporate bond landscape.

Related Trends

Citation

U.S. Federal Reserve, ICE BofA B & Lower Emerging Markets Corporate Plus Index Option-Adjusted Spread [BAMLEM4BRRBLCRPIOAS], retrieved from FRED.

Last Checked: 8/1/2025