ICE BofA BB US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread
BAMLEM3RBBLCRPIUSOAS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
2.85
Year-over-Year Change
0.71%
Date Range
10/22/2021 - 8/5/2025
Summary
The ICE BofA BB US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for emerging market corporate bonds rated BB. This metric provides critical insights into market perception of credit risk and overall economic conditions in emerging 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 index represents the spread between emerging market corporate bonds and a benchmark risk-free rate, adjusted for embedded options. Economists and investors use this spread to assess credit market conditions, risk appetite, and potential investment opportunities in emerging economies.
Methodology
The spread is calculated by comparing the yield of BB-rated emerging market corporate bonds to a risk-free benchmark, with statistical adjustments for potential option-related variations.
Historical Context
Central banks and financial institutions use this index to monitor credit market dynamics, assess economic risk, and inform monetary policy decisions.
Key Facts
- Measures credit risk premium for BB-rated emerging market corporate bonds
- Provides insights into market perception of economic conditions
- Used by investors and policymakers to assess financial market health
FAQs
Q: What does a widening spread indicate?
A: A widening spread suggests increasing perceived credit risk in emerging markets, potentially signaling economic uncertainty or reduced investor confidence.
Q: How often is this index updated?
A: The index is typically updated daily, reflecting real-time changes in market conditions and investor sentiment.
Q: Why are option-adjusted spreads important?
A: Option-adjusted spreads provide a more accurate representation of credit risk by accounting for potential variations in bond characteristics like callable features.
Q: Who uses this index?
A: Investors, financial analysts, central bankers, and economic policymakers use this index to assess emerging market credit conditions and investment risks.
Q: What limitations exist in this index?
A: The index focuses on BB-rated bonds, which means it may not fully represent the entire spectrum of emerging market corporate debt.
Related Trends
70.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB70Y6M
ICE BofA Financial US Emerging Markets Liquid Corporate Plus Index Semi-Annual Yield to Worst
BAMLEMFLFLCRPIUSSYTW
80-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB80YR
50.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB50Y6M
83.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB83Y6M
18-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB18YR
Citation
U.S. Federal Reserve, ICE BofA BB US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread [BAMLEM3RBBLCRPIUSOAS], retrieved from FRED.
Last Checked: 8/1/2025