ICE BofA AA US Corporate Index Semi-Annual Yield to Worst
This dataset tracks ice bofa aa us corporate index semi-annual yield to worst over time.
Latest Value
4.63
Year-over-Year Change
-3.34%
Date Range
12/31/1996 - 8/5/2025
Summary
The ICE BofA AA US Corporate Index Semi-Annual Yield to Worst tracks the lowest potential yield for high-quality corporate bonds with a AA credit rating. This metric provides critical insights into corporate borrowing costs and market expectations for fixed-income investments.
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 yield measure represents the minimum potential return an investor could receive from AA-rated corporate bonds under various scenarios. Economists and investors use it to assess corporate credit risk, market sentiment, and potential investment returns.
Methodology
The index is calculated by Bank of America using a comprehensive analysis of AA-rated corporate bond yields, considering potential call dates and worst-case yield scenarios.
Historical Context
This trend is frequently used by central banks, investment managers, and policymakers to evaluate corporate credit markets and potential economic shifts.
Key Facts
- Represents yields for high-quality AA-rated corporate bonds
- Provides insight into corporate borrowing costs
- Reflects market expectations for fixed-income investments
FAQs
Q: What does 'Yield to Worst' mean?
A: Yield to Worst is the lowest potential yield an investor could receive from a bond without the issuer defaulting, considering potential early redemption scenarios.
Q: Why are AA-rated bonds significant?
A: AA-rated bonds represent high-quality corporate debt with low default risk, making them attractive to conservative investors seeking stable returns.
Q: How often is this index updated?
A: The index is typically updated semi-annually, providing a periodic snapshot of corporate bond market conditions.
Q: How do changes in this index impact investors?
A: Fluctuations can signal changes in corporate credit risk, potentially influencing investment strategies and portfolio allocations.
Q: What limitations exist in this measurement?
A: The index focuses on AA-rated bonds and may not fully represent the entire corporate bond market or lower-rated securities.
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Citation
U.S. Federal Reserve, ICE BofA AA US Corporate Index Semi-Annual Yield to Worst [BAMLC0A2CAASYTW], retrieved from FRED.
Last Checked: 8/1/2025