ICE BofA Financial US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread
This dataset tracks ice bofa financial us emerging markets liquid corporate plus index option-adjusted spread over time.
Latest Value
1.37
Year-over-Year Change
6.20%
Date Range
12/31/2003 - 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.
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
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
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
Yield curve steepening benefits US value and small-cap stocks
The Steepening Yield Curve in Today's Economy The recent rise in the 10-year U.S. Treasury bond yield sparks renewed interest in its impact on the financial markets. A steepening yield curve, where the gap between short-term and long-term interest rates widens, is grabbing investors' attention. While it usually suggests a positive outlook for economic growth, the implications for different segments of the stock market, such as value and small-cap stocks, can be significant. This shift in the yi
Federal Reserve meeting to discuss US interest rates decisions
Interest Rates and the Federal Reserve's Role The effective federal funds rate is crucial in the Federal Reserve's meetings and decisions on U.S. monetary policy. The Federal Reserve, often called the Fed, plays a significant role in managing the economy's stability. Its meetings are highly anticipated events where crucial decisions about interest rates are made. These discussions significantly affect inflation, unemployment rates, and financial markets. Understanding how these meetings operate
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 Financial US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread [BAMLEMFLFLCRPIUSOAS], retrieved from FRED.
Last Checked: 8/1/2025