ICE BofA Crossover Emerging Markets Corporate Plus Index Option-Adjusted Spread

BAMLEM5BCOCRPIOAS • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

1.88

Year-over-Year Change

0.53%

Date Range

10/25/2021 - 8/6/2025

Summary

The ICE BofA Crossover Emerging Markets Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for emerging market corporate bonds relative to benchmark rates. This metric provides critical insights into global corporate credit market conditions and investor risk perception.

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 bond yields and a risk-free benchmark, capturing the additional compensation investors demand for holding corporate debt in developing economies. Economists and investors use this spread to assess credit market health, potential investment risks, and broader economic sentiment in emerging markets.

Methodology

The spread is calculated by analyzing option-adjusted spreads across a diverse portfolio of emerging market corporate bonds, accounting for embedded options and yield variations.

Historical Context

Central banks, international financial institutions, and investment managers use this index to evaluate credit market dynamics, assess economic risks, and inform strategic investment and policy decisions.

Key Facts

  • Measures credit risk premium for emerging market corporate bonds
  • Reflects investor perception of economic and financial stability
  • Provides insights into global corporate credit 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 frequently is this index updated?

A: The index is typically updated daily, providing real-time insights into emerging market corporate credit market conditions.

Q: Why is this spread important for investors?

A: The spread helps investors assess potential returns and risks associated with emerging market corporate bonds, guiding investment allocation strategies.

Q: How do geopolitical events impact this index?

A: Geopolitical tensions, economic policy changes, and global market shifts can significantly influence the spread by altering investor risk perceptions.

Q: What are the limitations of this index?

A: The index represents a broad market view and may not capture specific regional or sector-level nuances in emerging market corporate credit markets.

Related Trends

Citation

U.S. Federal Reserve, ICE BofA Crossover Emerging Markets Corporate Plus Index Option-Adjusted Spread [BAMLEM5BCOCRPIOAS], retrieved from FRED.

Last Checked: 8/1/2025