ICE BofA AA US Corporate Index Effective Yield
This dataset tracks ice bofa aa us corporate index effective yield over time.
Latest Value
4.63
Year-over-Year Change
-2.11%
Date Range
12/31/1996 - 8/7/2025
Summary
The ICE BofA AA US Corporate Index Effective Yield tracks the average yield of high-quality corporate bonds rated AA by credit rating agencies. This metric provides critical insight into corporate borrowing costs and overall market sentiment for investment-grade debt.
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 weighted average effective yield of AA-rated corporate bonds in the United States, reflecting the current interest rate environment and corporate credit market conditions. Economists and investors closely monitor this trend as an indicator of corporate financial health and potential economic pressures.
Methodology
The yield is calculated by ICE BofA using a comprehensive methodology that weights bond yields based on their market value and credit rating.
Historical Context
This index is used by central banks, financial analysts, and policymakers to assess corporate credit markets, monetary policy effectiveness, and broader economic trends.
Key Facts
- Represents high-quality corporate bonds with AA credit rating
- Provides insight into corporate borrowing costs
- Reflects current market conditions and interest rate environment
FAQs
Q: What does this index tell investors?
A: The index indicates the average yield for high-quality corporate bonds, helping investors understand current corporate borrowing costs and market sentiment.
Q: How often is this index updated?
A: The index is typically updated daily, reflecting real-time changes in corporate bond markets and interest rates.
Q: Why are AA-rated bonds significant?
A: AA-rated bonds represent high-quality, low-risk corporate debt, making them important indicators of corporate financial stability and market conditions.
Q: How do changes in this index impact economic policy?
A: Fluctuations in the index can influence monetary policy decisions, as they reflect broader trends in corporate borrowing and economic health.
Q: What are the limitations of this index?
A: The index only represents AA-rated bonds and may not fully capture the entire corporate bond market or lower-rated debt securities.
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Citation
U.S. Federal Reserve, ICE BofA AA US Corporate Index Effective Yield [BAMLC0A2CAAEY], retrieved from FRED.
Last Checked: 8/1/2025