ICE BofA High Yield Emerging Markets Corporate Plus Index Option-Adjusted Spread
This dataset tracks ice bofa high yield emerging markets corporate plus index option-adjusted spread over time.
Latest Value
3.43
Year-over-Year Change
-3.38%
Date Range
12/31/1998 - 8/6/2025
Summary
The ICE BofA High Yield Emerging Markets Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for high-yield 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 represents the spread between emerging market high-yield corporate bond yields and a benchmark risk-free rate, adjusted for embedded options. Economists and investors use it to assess credit market conditions and potential investment risks in developing economies.
Methodology
The spread is calculated by comparing the yield of high-yield emerging market corporate bonds to a comparable risk-free benchmark, with statistical adjustments for potential option-related variations.
Historical Context
Central banks and international financial institutions use this spread as a key indicator of global financial market sentiment and potential economic vulnerabilities.
Key Facts
- Measures credit risk premium for high-yield emerging market corporate bonds
- Provides insights into global financial market stress
- Used by investors to assess potential investment risks
FAQs
Q: What does a widening spread indicate?
A: A widening spread suggests increasing perceived risk in emerging market corporate bonds, potentially signaling economic uncertainty or market stress.
Q: How often is this index updated?
A: The index is typically updated daily, reflecting real-time changes in market conditions and investor sentiment.
Q: Why are option-adjusted spreads important?
A: Option-adjusted spreads provide a more accurate representation of bond yields by accounting for potential embedded options that might affect valuation.
Q: How do investors use this index?
A: Investors use this index to compare relative risk and potential returns across different emerging market corporate bond portfolios.
Q: What are the limitations of this index?
A: The index focuses on high-yield bonds and may not fully represent the entire emerging market corporate bond landscape, potentially overlooking some market nuances.
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
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
US 10-year Treasury yield rise signals caution for investors
How the 10-Year Treasury Yield Surge Impacts Investors and the Fixed-Income Market The 10-year Treasury yield has surged past the 4% mark, capturing the attention of investors and markets alike. This rise is not just a random development; it signals broader shifts in the economic landscape, influencing everything from bond markets to investor strategies. When the 10-year Treasury yield shifts, it sends a ripple effect through financial ecosystems, underscoring its role as a critical economic in
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 High Yield Emerging Markets Corporate Plus Index Option-Adjusted Spread [BAMLEMHBHYCRPIOAS], retrieved from FRED.
Last Checked: 8/1/2025