ICE BofA Non-Financial US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread
This dataset tracks ice bofa non-financial us emerging markets liquid corporate plus index option-adjusted spread over time.
Latest Value
2.25
Year-over-Year Change
1.35%
Date Range
12/31/2003 - 8/5/2025
Summary
The ICE BofA Non-Financial US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for corporate bonds in emerging markets. This metric provides critical insights into market perception of credit risk and overall economic health for non-financial corporate debt.
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 corporate bond yields and a benchmark risk-free rate, adjusted for embedded options. Economists and investors use this spread to gauge market sentiment, potential default risks, and the relative attractiveness of emerging market corporate debt.
Methodology
The spread is calculated by comparing the option-adjusted yield of non-financial corporate bonds in emerging markets to a corresponding risk-free benchmark, typically U.S. Treasury securities.
Historical Context
Central banks, investment managers, and policymakers use this spread as a key indicator of global financial market stress and corporate credit conditions.
Key Facts
- Measures credit risk premium for non-financial corporate bonds in emerging markets
- Provides insights into market perception of economic conditions
- Helps investors assess potential investment risks and opportunities
FAQs
Q: What does a widening spread indicate?
A: A widening spread typically suggests increasing perceived credit risk and potential economic uncertainty in emerging markets.
Q: How often is this index updated?
A: The index is typically updated daily, reflecting real-time changes in market conditions and credit risk perceptions.
Q: Why are option-adjusted spreads important?
A: Option-adjusted spreads account for embedded options in bonds, providing a more accurate representation of true credit risk compared to simple yield spreads.
Q: Who uses this index?
A: Investment managers, central banks, economic researchers, and financial analysts use this index to assess emerging market corporate credit conditions.
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 smaller or less liquid markets.
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Citation
U.S. Federal Reserve, ICE BofA Non-Financial US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread [BAMLEMNFNFLCRPIUSOAS], retrieved from FRED.
Last Checked: 8/1/2025