ICE BofA Latin America Emerging Markets Corporate Plus Index Option-Adjusted Spread
This dataset tracks ice bofa latin america emerging markets corporate plus index option-adjusted spread over time.
Latest Value
2.74
Year-over-Year Change
0.37%
Date Range
12/31/1998 - 8/6/2025
Summary
The ICE BofA Latin America Emerging Markets Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for corporate bonds in Latin American emerging markets. This metric provides critical insights into regional financial market conditions and investor sentiment toward Latin American 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 average spread between Latin American corporate bond yields and a benchmark risk-free rate, adjusted for embedded options. Economists and investors use this spread to assess credit risk, market liquidity, and overall economic health in emerging market corporate sectors.
Methodology
The spread is calculated by comparing corporate bond yields to a risk-free benchmark, with statistical adjustments made to account for potential embedded options in the bonds.
Historical Context
Financial analysts and policymakers use this index to evaluate investment risks, monitor economic stability, and make informed decisions about emerging market corporate debt.
Key Facts
- Measures credit risk for Latin American corporate bonds
- Provides insights into regional financial market conditions
- Used by investors to assess emerging market investment opportunities
FAQs
Q: What does a widening spread indicate?
A: A widening spread typically suggests increasing perceived credit risk and potential economic challenges in Latin American markets.
Q: How often is this index updated?
A: The index is typically updated regularly, with most data sources providing daily or weekly refreshed information.
Q: Why is this spread important for investors?
A: The spread helps investors understand the relative risk and potential returns of corporate bonds in Latin American emerging markets.
Q: How does this index relate to overall economic conditions?
A: The spread reflects broader economic conditions, including political stability, economic performance, and global market sentiment.
Q: What are the limitations of this index?
A: The index focuses specifically on corporate bonds and may not capture all aspects of economic complexity in Latin American markets.
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Citation
U.S. Federal Reserve, ICE BofA Latin America Emerging Markets Corporate Plus Index Option-Adjusted Spread [BAMLEMRLCRPILAOAS], retrieved from FRED.
Last Checked: 8/1/2025