ICE BofA High Yield Emerging Markets Corporate Plus Index Option-Adjusted Spread
BAMLEMHBHYCRPIOAS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
3.43
Year-over-Year Change
-3.38%
Date Range
10/25/2021 - 8/6/2025
Summary
The ICE BofA High Yield Emerging Markets Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for high-yield corporate bonds in emerging markets. This metric provides critical insights into global financial market stress 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 high-yield corporate bond yields and a benchmark risk-free rate, adjusted for embedded options. Economists and investors use it to assess credit market conditions and potential investment risks in developing economies.
Methodology
The spread is calculated by comparing the yield of high-yield emerging market corporate bonds to a comparable risk-free benchmark, with statistical adjustments for potential option-related variations.
Historical Context
Central banks and international financial institutions use this spread as a key indicator of global financial market sentiment and potential economic vulnerabilities.
Key Facts
- Measures credit risk premium for high-yield emerging market corporate bonds
- Provides insights into global financial market stress
- Used by investors to assess potential investment risks
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 market stress.
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 bond yields by accounting for potential embedded options that might affect valuation.
Q: How do investors use this index?
A: Investors use this index to compare relative risk and potential returns across different emerging market corporate bond portfolios.
Q: What are the limitations of this index?
A: The index focuses on high-yield bonds and may not fully represent the entire emerging market corporate bond landscape, potentially overlooking some market nuances.
Related Trends
ICE BofA AAA-A US Emerging Markets Liquid Corporate Plus Index Effective Yield
BAMLEM1RAAA2ALCRPIUSEY
25.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB25Y6M
ICE BofA 3-5 Year US Corporate Index Option-Adjusted Spread
BAMLC2A0C35Y
12-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB12YR
63.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB63Y6M
32.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB32Y6M
Citation
U.S. Federal Reserve, ICE BofA High Yield Emerging Markets Corporate Plus Index Option-Adjusted Spread [BAMLEMHBHYCRPIOAS], retrieved from FRED.
Last Checked: 8/1/2025