ICE BofA High Grade US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread
This dataset tracks ice bofa high grade us emerging markets liquid corporate plus index option-adjusted spread over time.
Latest Value
0.92
Year-over-Year Change
3.37%
Date Range
12/31/2003 - 8/6/2025
Summary
The ICE BofA High Grade US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for high-quality corporate bonds in emerging markets. This metric provides crucial insights into market sentiment and potential economic stress 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 index represents the additional yield investors require to hold emerging market corporate bonds over a risk-free benchmark, accounting for embedded options. Economists and investors use this spread as a key indicator of credit market conditions and perceived risk in emerging market corporate debt.
Methodology
The spread is calculated by comparing the yield of high-grade emerging market corporate bonds to a benchmark Treasury rate, with statistical adjustments for embedded options.
Historical Context
Central banks and financial analysts use this spread to assess global financial market conditions, credit risk, and potential economic vulnerabilities in emerging markets.
Key Facts
- Measures credit risk premium for high-grade emerging market corporate bonds
- Accounts for embedded options in bond pricing
- Provides insights into global market sentiment and economic conditions
FAQs
Q: What does a widening spread indicate?
A: A widening spread typically suggests increasing perceived risk in emerging market corporate bonds, potentially signaling economic stress or market uncertainty.
Q: How do investors use this index?
A: Investors use this spread to assess potential investment risks and make informed decisions about emerging market corporate bond investments.
Q: How often is this index updated?
A: The index is typically updated daily, providing real-time insights into market conditions and credit risk.
Q: What makes this index unique?
A: The option-adjusted methodology provides a more nuanced view of credit spreads by accounting for complex bond features and embedded options.
Q: Are there limitations to this index?
A: The index focuses on high-grade bonds and may not fully represent the entire spectrum of emerging market corporate debt or smaller market segments.
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
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
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
S&P 500 hits record as U.S. producer prices fall
S&P 500 Reaches Record High as U.S. Producer Prices Decline The S&P 500 reaching a record high suggests a notable moment in market history, particularly as the U.S. Producer Price Index (PPI) shows a downward trend. The link between the stock markets and producer prices demonstrates how interconnected these financial indicators can be. Falling PPI numbers might seem positive, yet they can signal underlying market changes. These shifts invite investors to recalibrate their approaches in response
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
U.S. Stocks Hit New Highs After Federal Reserve Meeting
S&P 500 Hits All-Time Highs Post-Federal Reserve Meeting The S&P 500 record high signifies a landmark achievement for the U.S. stock market, further amplified by recent financial developments. Following a pivotal Federal Reserve meeting, U.S. stocks hit new highs, with the S&P 500 performance, Dow Jones reaching new records, and Nasdaq soaring to a peak, collectively illustrating a robust market outlook. This surge reflects strong investor sentiment, with the Fed's policy announcements acting a
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 Grade US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread [BAMLEMHGHGLCRPIUSOAS], retrieved from FRED.
Last Checked: 8/1/2025