ICE BofA Financial US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread
BAMLEMFLFLCRPIUSOAS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.37
Year-over-Year Change
6.20%
Date Range
10/25/2021 - 8/6/2025
Summary
The ICE BofA Financial US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for emerging market corporate bonds relative to benchmark Treasury securities. This metric provides critical insights into global financial market sentiment and perceived risk levels 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 spread represents the additional yield investors demand for holding emerging market corporate bonds compared to risk-free government securities. Economists and investors use this indicator to assess credit market conditions, potential investment risks, and overall economic health in emerging markets.
Methodology
The spread is calculated by comparing the option-adjusted spread of emerging market corporate bonds to a benchmark Treasury yield, accounting for embedded options and potential variations in cash flows.
Historical Context
Financial analysts and policymakers use this index to evaluate global credit market conditions, assess investment risks, and make informed decisions about emerging market economic strategies.
Key Facts
- Measures credit risk premium for emerging market corporate bonds
- Provides insights into global financial market sentiment
- Helps investors assess potential investment risks in developing economies
FAQs
Q: What does this spread indicate about market conditions?
A: A widening spread suggests increased perceived risk in emerging market corporate bonds, while a narrowing spread indicates improved market confidence and lower perceived risk.
Q: How do investors use this index?
A: Investors use this spread to compare relative risk and potential returns across different emerging market corporate bond investments and make informed portfolio allocation decisions.
Q: How is the option-adjusted spread calculated?
A: The spread is calculated by comparing the yield of emerging market corporate bonds to a benchmark Treasury yield, adjusting for potential embedded options that might affect cash flows.
Q: What economic factors influence this spread?
A: Factors such as global economic conditions, geopolitical risks, monetary policies, and individual country economic performance can significantly impact the spread.
Q: How frequently is this index updated?
A: The index is typically updated regularly, with most data sources providing daily or weekly updates to reflect current market conditions.
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Citation
U.S. Federal Reserve, ICE BofA Financial US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread [BAMLEMFLFLCRPIUSOAS], retrieved from FRED.
Last Checked: 8/1/2025