ICE BofA High Yield US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread
This dataset tracks ice bofa high yield us emerging markets liquid corporate plus index option-adjusted spread over time.
Latest Value
3.38
Year-over-Year Change
-0.59%
Date Range
12/31/2003 - 8/11/2025
Summary
The ICE BofA High Yield US Emerging Markets Liquid 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 market sentiment and potential financial 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 spread between emerging market high-yield corporate bonds and a benchmark risk-free rate, adjusted for embedded options. Economists and investors use this spread to assess credit market conditions, risk perception, and potential investment opportunities in emerging market corporate debt.
Methodology
The spread is calculated by comparing the yield of high-yield emerging market corporate bonds to a risk-free benchmark, with statistical adjustments for embedded options to provide a more accurate risk assessment.
Historical Context
Financial analysts and policymakers use this spread as a key indicator of global financial market health, credit risk, and potential economic volatility in emerging markets.
Key Facts
- Measures credit risk premium for high-yield emerging market corporate bonds
- Provides insights into market sentiment and financial stress
- Used by investors to assess potential investment risks and opportunities
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 uncertainty or reduced investor confidence.
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: Why are option-adjusted spreads important?
A: Option-adjusted spreads provide a more accurate measure of credit risk by accounting for embedded options that can affect bond valuation and risk assessment.
Q: How do investors use this index?
A: Investors use this index to compare relative risk across different emerging market corporate bonds and make informed investment decisions.
Q: What are the limitations of this index?
A: The index focuses on liquid corporate bonds and may not fully represent all emerging market debt, potentially missing some market nuances.
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Citation
U.S. Federal Reserve, ICE BofA High Yield US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread [BAMLEMHYHYLCRPIUSOAS], retrieved from FRED.
Last Checked: 8/1/2025