ICE BofA BBB US Corporate Index Effective Yield
This dataset tracks ice bofa bbb us corporate index effective yield over time.
Latest Value
5.14
Year-over-Year Change
-1.72%
Date Range
12/31/1996 - 8/7/2025
Summary
The ICE BofA BBB US Corporate Index Effective Yield represents the average yield of BBB-rated corporate bonds in the United States. This metric provides critical insight into corporate borrowing costs and market sentiment for medium-risk corporate 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 tracks the effective yield for corporate bonds rated BBB, which are considered medium-grade or 'investment grade' securities with moderate credit risk. Economists and investors use this trend to assess corporate financial health, credit market conditions, and potential economic stress.
Methodology
The yield is calculated by Bank of America using a weighted average of effective yields for BBB-rated corporate bonds across various sectors and maturities.
Historical Context
This index is frequently used by policymakers, investors, and financial analysts to gauge corporate credit conditions and potential economic shifts.
Key Facts
- BBB ratings indicate medium credit quality with moderate default risk
- Reflects corporate borrowing costs across multiple economic sectors
- Serves as a leading indicator of corporate financial health
FAQs
Q: What does a BBB rating mean?
A: A BBB rating indicates moderate credit quality with some speculative elements. Bonds in this category are considered investment grade but have more potential credit risk compared to higher-rated securities.
Q: How do changes in this yield impact investors?
A: Rising yields can indicate increased perceived risk in corporate markets, potentially signaling economic uncertainty. Falling yields might suggest improved corporate financial conditions.
Q: How often is this index updated?
A: The ICE BofA BBB US Corporate Index is typically updated daily, reflecting real-time changes in corporate bond market conditions.
Q: Why do economists track this index?
A: This index provides insights into corporate borrowing costs, credit market health, and potential economic stress or stability across different business sectors.
Q: What are the limitations of this index?
A: The index represents only BBB-rated bonds and may not fully capture the entire corporate bond market or extreme market conditions.
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Citation
U.S. Federal Reserve, ICE BofA BBB US Corporate Index Effective Yield [BAMLC0A4CBBBEY], retrieved from FRED.
Last Checked: 8/1/2025