ICE BofA High Grade US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread
BAMLEMHGHGLCRPIUSOAS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.92
Year-over-Year Change
3.37%
Date Range
10/25/2021 - 8/6/2025
Summary
The ICE BofA High Grade US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for high-quality corporate bonds in emerging markets. This metric provides crucial insights into market sentiment and potential economic stress 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 require to hold emerging market corporate bonds over a risk-free benchmark, accounting for embedded options. Economists and investors use this spread as a key indicator of credit market conditions and perceived risk in emerging market corporate debt.
Methodology
The spread is calculated by comparing the yield of high-grade emerging market corporate bonds to a benchmark Treasury rate, with statistical adjustments for embedded options.
Historical Context
Central banks and financial analysts use this spread to assess global financial market conditions, credit risk, and potential economic vulnerabilities in emerging markets.
Key Facts
- Measures credit risk premium for high-grade emerging market corporate bonds
- Accounts for embedded options in bond pricing
- Provides insights into global market sentiment and economic conditions
FAQs
Q: What does a widening spread indicate?
A: A widening spread typically suggests increasing perceived risk in emerging market corporate bonds, potentially signaling economic stress or market uncertainty.
Q: How do investors use this index?
A: Investors use this spread to assess potential investment risks and make informed decisions about emerging market corporate bond investments.
Q: How often is this index updated?
A: The index is typically updated daily, providing real-time insights into market conditions and credit risk.
Q: What makes this index unique?
A: The option-adjusted methodology provides a more nuanced view of credit spreads by accounting for complex bond features and embedded options.
Q: Are there limitations to this index?
A: The index focuses on high-grade bonds and may not fully represent the entire spectrum of emerging market corporate debt or smaller market segments.
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Citation
U.S. Federal Reserve, ICE BofA High Grade US Emerging Markets Liquid Corporate Plus Index Option-Adjusted Spread [BAMLEMHGHGLCRPIUSOAS], retrieved from FRED.
Last Checked: 8/1/2025