ICE BofA Emerging Markets Corporate Plus Index Option-Adjusted Spread
This dataset tracks ice bofa emerging markets corporate plus index option-adjusted spread over time.
Latest Value
1.56
Year-over-Year Change
0.00%
Date Range
12/31/1998 - 8/11/2025
Summary
The ICE BofA Emerging Markets Corporate Plus Index Option-Adjusted Spread measures the average credit spread for corporate bonds in emerging markets, indicating the perceived risk premium for these investments. This metric provides crucial insights into global financial market sentiment and the relative economic health of 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 demand for holding emerging market corporate bonds compared to a benchmark risk-free rate, typically U.S. Treasury securities. Economists and investors use this spread as a key indicator of credit risk, market liquidity, and overall economic conditions in developing countries.
Methodology
The spread is calculated by analyzing option-adjusted spreads across a diverse range of corporate bonds from emerging market issuers, accounting for embedded options and potential variations in cash flows.
Historical Context
Central banks, international financial institutions, and investment managers use this index to assess global credit market conditions and make strategic investment or policy decisions.
Key Facts
- Measures credit risk for corporate bonds in emerging markets
- Provides insights into global financial market sentiment
- Helps investors assess relative economic conditions 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 reduced investor confidence.
Q: How often is this index updated?
A: The index is typically updated daily, reflecting real-time changes in market conditions and investor perceptions.
Q: Why do investors track this spread?
A: Investors use this spread to make informed decisions about international bond investments and assess potential risks in emerging markets.
Q: How does this index relate to economic policy?
A: Central banks and policymakers use this spread to understand global financial conditions and potential economic vulnerabilities.
Q: What are the limitations of this index?
A: The index represents an aggregate view and may not capture specific nuances of individual emerging market economies or sectors.
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Citation
U.S. Federal Reserve, ICE BofA Emerging Markets Corporate Plus Index Option-Adjusted Spread [BAMLEMCBPIOAS], retrieved from FRED.
Last Checked: 8/1/2025