ICE BofA AAA US Corporate Index Effective Yield
This dataset tracks ice bofa aaa us corporate index effective yield over time.
Latest Value
4.69
Year-over-Year Change
-4.09%
Date Range
12/31/1996 - 8/5/2025
Summary
The ICE BofA AAA US Corporate Index Effective Yield represents the average yield of top-rated corporate bonds in the United States. This metric provides critical insight into corporate borrowing costs and overall market sentiment for high-quality debt instruments.
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 tracks the effective yield of AAA-rated corporate bonds, serving as a key benchmark for corporate debt performance and investor expectations. Economists and financial analysts use this indicator to assess corporate credit conditions and potential economic trends.
Methodology
The yield is calculated by ICE BofA using a weighted average of yields for AAA-rated US corporate bonds, reflecting current market conditions and interest rate environments.
Historical Context
Policymakers and investors use this index to evaluate corporate credit markets, assess economic health, and make informed investment and monetary policy decisions.
Key Facts
- Represents yields for highest-rated corporate bonds
- Provides insight into corporate borrowing costs
- Reflects overall market sentiment for high-quality debt
FAQs
Q: What does a high AAA corporate bond yield indicate?
A: A high yield typically suggests increased market risk or expectations of higher interest rates. It can signal potential economic uncertainty or changing monetary policy conditions.
Q: How often is this index updated?
A: The ICE BofA AAA US Corporate Index is typically updated daily, reflecting real-time changes in corporate bond market conditions.
Q: Why are AAA-rated bonds significant?
A: AAA-rated bonds represent the highest credit quality, indicating minimal default risk and strong financial stability of the issuing corporations.
Q: How do investors use this index?
A: Investors use this index to compare corporate bond performance, assess market conditions, and make informed investment allocation decisions.
Q: What limitations exist in this index?
A: The index only represents AAA-rated bonds, which may not fully capture the broader corporate bond market's complexity and diversity.
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Citation
U.S. Federal Reserve, ICE BofA AAA US Corporate Index Effective Yield [BAMLC0A1CAAAEY], retrieved from FRED.
Last Checked: 8/1/2025