ICE BofA AAA US Corporate Index Semi-Annual Yield to Worst
This dataset tracks ice bofa aaa us corporate index semi-annual yield to worst over time.
Latest Value
4.71
Year-over-Year Change
-3.09%
Date Range
12/31/1996 - 8/6/2025
Summary
The ICE BofA AAA US Corporate Index Semi-Annual Yield to Worst measures the lowest potential yield for high-quality corporate bonds without triggering default. This metric provides critical insight into corporate bond market conditions and investor risk expectations.
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 yield of top-rated corporate bonds, reflecting the minimum return investors can expect under various market scenarios. Economists and financial analysts use this indicator to assess corporate credit quality and broader economic health.
Methodology
The yield is calculated by analyzing AAA-rated corporate bonds and determining the lowest potential yield across different potential scenarios of bond redemption.
Historical Context
Central banks and investment managers use this metric to evaluate corporate credit markets, monetary policy implications, and potential economic risks.
Key Facts
- Represents yields for highest-rated corporate bonds
- Provides minimum expected return under various scenarios
- Critical indicator of corporate credit market conditions
FAQs
Q: What does 'Yield to Worst' mean?
A: Yield to Worst represents the lowest potential yield an investor can receive from a bond without the issuer defaulting, considering potential early redemption scenarios.
Q: Why are AAA-rated bonds significant?
A: AAA-rated bonds represent the highest credit quality, indicating minimal default risk and typically offering lower but more stable returns compared to lower-rated bonds.
Q: How often is this index updated?
A: The ICE BofA AAA US Corporate Index is typically updated semi-annually, providing a periodic snapshot of corporate bond market conditions.
Q: How do investors use this index?
A: Investors use this index to assess corporate credit market health, compare bond yields, and make informed investment decisions across different economic environments.
Q: What limitations exist in this index?
A: The index only represents AAA-rated bonds, which means it doesn't capture the full spectrum of corporate bond market complexity and risk.
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Citation
U.S. Federal Reserve, ICE BofA AAA US Corporate Index Semi-Annual Yield to Worst [BAMLC0A1CAAASYTW], retrieved from FRED.
Last Checked: 8/1/2025