ICE BofA AAA-A Emerging Markets Corporate Plus Index Option-Adjusted Spread

BAMLEM1BRRAAA2ACRPIOAS • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.64

Year-over-Year Change

3.23%

Date Range

10/22/2021 - 8/5/2025

Summary

The ICE BofA AAA-A Emerging Markets Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for high-quality emerging market corporate bonds relative to benchmark rates. This metric provides crucial insights into global market sentiment and the perceived financial health of corporate borrowers in developing economies.

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 benchmark rates. 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 yield difference between AAA-A rated emerging market corporate bonds and a comparable risk-free benchmark.

Historical Context

Financial analysts and policymakers use this spread to assess global credit market conditions, investment risk, and potential economic pressures in emerging markets.

Key Facts

  • Measures credit risk premium for high-quality emerging market corporate bonds
  • Reflects investor sentiment and perceived economic stability
  • Provides insights into global financial market conditions

FAQs

Q: What does a widening spread indicate?

A: A widening spread typically suggests increased 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 are AAA-A rated bonds significant?

A: AAA-A rated bonds represent the highest quality corporate debt, offering a reliable indicator of credit market health and investment risk.

Q: How do investors use this spread?

A: Investors use this spread to assess potential investment opportunities, evaluate market risks, and make informed decisions about emerging market corporate bonds.

Q: What limitations exist in this index?

A: The index focuses on high-rated bonds and may not fully capture the entire spectrum of emerging market corporate debt risk.

Related Trends

Citation

U.S. Federal Reserve, ICE BofA AAA-A Emerging Markets Corporate Plus Index Option-Adjusted Spread [BAMLEM1BRRAAA2ACRPIOAS], retrieved from FRED.

Last Checked: 8/1/2025