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

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

Latest Value

1.65

Year-over-Year Change

1.23%

Date Range

10/25/2021 - 8/6/2025

Summary

The ICE BofA US Emerging Markets Corporate Plus Index Option-Adjusted Spread measures the credit risk premium for corporate bonds in emerging markets. This metric provides critical 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 additional yield investors demand for holding emerging market corporate bonds compared to a risk-free benchmark. Economists and investors use this spread as a key indicator of credit market conditions, financial stress, and potential investment opportunities in developing economies.

Methodology

The spread is calculated by analyzing the option-adjusted difference between emerging market corporate bond yields and a comparable risk-free rate, accounting for embedded options and complex bond structures.

Historical Context

Central banks, international financial institutions, and investment managers use this metric to assess global credit market conditions and make strategic investment or policy decisions.

Key Facts

  • Measures credit risk premium for emerging market corporate bonds
  • Reflects investor perception of risk in developing economies
  • Provides insights into global financial 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 often is this index updated?

A: The index is typically updated daily, providing real-time insights into market conditions and credit risk perceptions.

Q: Why do investors track this spread?

A: Investors use this spread to assess potential investment risks and opportunities in emerging market corporate debt, helping guide portfolio allocation strategies.

Q: How does this index relate to economic policy?

A: Central banks and policymakers use this spread as a barometer of global financial market health and potential systemic risks in emerging economies.

Q: What are the limitations of this index?

A: The index represents a broad market view and may not capture specific risks of individual countries or corporations, requiring complementary analysis.

Related Trends

Citation

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

Last Checked: 8/1/2025