ICE BofA Crossover US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread
This dataset tracks ice bofa crossover us emerging markets liquid corporate plus index option-adjusted spread over time.
Latest Value
1.85
Year-over-Year Change
3.35%
Date Range
12/31/2003 - 9/4/2025
Summary
The ICE BofA Crossover US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for emerging market corporate bonds relative to U.S. Treasury securities. This metric provides critical insights into global market sentiment and the perceived financial health of emerging market 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 additional yield investors demand for holding emerging market corporate bonds compared to risk-free government securities. Economists and investors use this spread as a key indicator of credit market conditions, risk perception, and potential investment opportunities in developing economies.
Methodology
The spread is calculated by analyzing the option-adjusted spread between emerging market corporate bond yields and comparable U.S. Treasury securities, accounting for embedded options and potential variations.
Historical Context
Financial analysts and policymakers use this spread to assess global credit market conditions, evaluate investment risks, and understand international capital flow dynamics.
Key Facts
- Measures credit risk premium for emerging market corporate bonds
- Indicates investor sentiment towards developing market debt
- Helps assess potential investment opportunities and market conditions
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 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 perceptions.
Q: Why do investors track this spread?
A: Investors use this spread to assess potential returns, evaluate risk, and make informed decisions about international corporate bond investments.
Q: How does this index relate to economic policy?
A: Central banks and policymakers use this spread to understand global financial market conditions and potential economic challenges in emerging markets.
Q: What are the limitations of this index?
A: The index represents a specific subset of emerging market corporate bonds and may not capture the entire complexity of global financial markets.
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Citation
U.S. Federal Reserve, ICE BofA Crossover US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread [BAMLEMXOCOLCRPIUSOAS], retrieved from FRED.
Last Checked: 8/1/2025