ICE BofA High Grade Emerging Markets Corporate Plus Index Option-Adjusted Spread

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

Latest Value

0.88

Year-over-Year Change

2.33%

Date Range

10/28/2021 - 8/11/2025

Summary

The ICE BofA High Grade Emerging Markets Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for high-grade corporate bonds in emerging markets. This metric provides crucial insights into global financial market sentiment and perceived risk levels for corporate debt 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 spread between emerging market high-grade corporate bond yields and a benchmark risk-free rate, adjusted for embedded options. Economists and investors use this spread as a key indicator of credit market conditions and potential investment risks in emerging economies.

Methodology

The spread is calculated by analyzing the option-adjusted difference between corporate bond yields and a comparable risk-free benchmark, accounting for potential embedded options in the bonds.

Historical Context

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

Key Facts

  • Measures credit risk premium for high-grade emerging market corporate bonds
  • Provides insights into global financial market sentiment
  • Helps investors assess potential risks in emerging economies

FAQs

Q: What does this index indicate about emerging market corporate bonds?

A: The index shows the additional yield investors require to hold emerging market corporate bonds compared to a risk-free benchmark, reflecting perceived credit risk.

Q: How do changes in this spread impact investment decisions?

A: Widening spreads suggest increased perceived risk, potentially deterring investors, while narrowing spreads indicate improved market confidence.

Q: How is the option-adjustment calculated in this index?

A: The option-adjustment accounts for potential embedded options in bonds that might affect their yield, providing a more accurate representation of true credit risk.

Q: Why is this index important for global investors?

A: It provides a standardized measure of credit risk across emerging markets, helping investors compare and assess potential investment opportunities.

Q: How frequently is this index updated?

A: The index is typically updated daily, reflecting real-time changes in market conditions and investor sentiment.

Related Trends

Citation

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

Last Checked: 8/1/2025