ICE BofA Euro High Yield Index Option-Adjusted Spread
This dataset tracks ice bofa euro high yield index option-adjusted spread over time.
Latest Value
2.72
Year-over-Year Change
-8.11%
Date Range
12/31/1997 - 8/8/2025
Summary
The ICE BofA Euro High Yield Index Option-Adjusted Spread measures the yield difference between European high-yield bonds and comparable benchmark securities. This metric provides critical insight into credit market risk and investor sentiment in European corporate debt markets.
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 require for holding higher-risk, non-investment-grade European corporate bonds compared to safer benchmark securities. Economists and financial analysts use this indicator to assess credit market stress, potential default risks, and overall economic health in European financial markets.
Methodology
The spread is calculated by comparing the yield of a basket of European high-yield bonds to a risk-free benchmark, with statistical adjustments to account for embedded options and complex bond characteristics.
Historical Context
Central banks, investment managers, and policymakers use this spread as a key indicator of financial market liquidity, credit market conditions, and potential economic stress.
Key Facts
- Measures risk premium for European high-yield corporate bonds
- Provides insight into credit market sentiment and economic conditions
- Calculated using advanced statistical option-adjustment techniques
FAQs
Q: What does a widening spread indicate?
A: A widening spread typically suggests increased perceived risk in European corporate bond markets, potentially signaling economic uncertainty or reduced investor confidence.
Q: How frequently is this index updated?
A: The ICE BofA Euro High Yield Index is typically updated daily, providing real-time insights into market conditions.
Q: Who uses this spread in financial analysis?
A: Investment banks, central banks, portfolio managers, and economic researchers use this spread to assess credit market health and make strategic financial decisions.
Q: How does this spread relate to economic policy?
A: Policymakers monitor this spread as an early warning indicator of potential economic stress or credit market disruptions that might require intervention.
Q: What are the limitations of this indicator?
A: While valuable, the spread represents a specific market segment and should be considered alongside other economic indicators for comprehensive analysis.
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Citation
U.S. Federal Reserve, ICE BofA Euro High Yield Index Option-Adjusted Spread [BAMLHE00EHYIOAS], retrieved from FRED.
Last Checked: 8/1/2025