ICE BofA Single-B US High Yield Index Option-Adjusted Spread
This dataset tracks ice bofa single-b us high yield index option-adjusted spread over time.
Latest Value
3.09
Year-over-Year Change
6.19%
Date Range
12/31/1996 - 8/11/2025
Summary
The ICE BofA Single-B US High Yield Index Option-Adjusted Spread measures the yield difference between single-B rated corporate bonds and U.S. Treasury securities, reflecting credit market risk and investor sentiment. This metric is a critical indicator of financial market stress and corporate borrowing conditions.
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 spread represents the additional compensation investors demand for holding higher-risk corporate bonds compared to risk-free government securities. Economists and financial analysts use this indicator to assess credit market health, potential default risks, and overall economic stress.
Methodology
The spread is calculated by comparing the option-adjusted yield of single-B rated corporate bonds to comparable U.S. Treasury securities, accounting for embedded options and potential early redemption scenarios.
Historical Context
Central banks and investment professionals use this spread as a key diagnostic tool for evaluating credit market conditions and potential economic downturns.
Key Facts
- Single-B rated bonds represent below-investment-grade corporate debt
- Wider spreads indicate higher perceived credit risk
- Used as a leading indicator of potential economic stress
FAQs
Q: What does a rising spread indicate?
A: A rising spread suggests increasing investor concern about corporate credit risk and potential economic challenges. Higher spreads typically signal reduced market confidence.
Q: How do single-B bonds differ from investment-grade bonds?
A: Single-B bonds are considered speculative or 'junk' bonds with higher default risk compared to investment-grade securities. They offer higher yields to compensate for increased credit risk.
Q: How frequently is this index updated?
A: The ICE BofA High Yield Index is typically updated daily, providing real-time insights into corporate credit market conditions.
Q: Why do investors track this spread?
A: Investors use this spread to assess credit market health, potential investment risks, and broader economic trends that might impact corporate performance.
Q: What are the limitations of this indicator?
A: While valuable, the spread represents a snapshot of market sentiment and should be considered alongside other economic indicators for comprehensive analysis.
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Citation
U.S. Federal Reserve, ICE BofA Single-B US High Yield Index Option-Adjusted Spread [BAMLH0A2HYB], retrieved from FRED.
Last Checked: 8/1/2025