ICE BofA BBB US Corporate Index Semi-Annual Yield to Worst
This dataset tracks ice bofa bbb us corporate index semi-annual yield to worst over time.
Latest Value
5.15
Year-over-Year Change
-3.01%
Date Range
12/31/1996 - 8/5/2025
Summary
The ICE BofA BBB US Corporate Index Semi-Annual Yield to Worst tracks the lowest potential yield for BBB-rated corporate bonds in the United States. This metric provides critical insight into corporate borrowing costs and market risk perception for lower-rated 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 yield-to-worst for BBB-rated corporate bonds, which are considered the lowest tier of investment-grade debt. Economists and investors use this metric to assess corporate credit risk, market sentiment, and potential economic stress in the corporate bond market.
Methodology
The index is calculated by Bank of America using a comprehensive analysis of BBB-rated corporate bonds, determining the lowest potential yield under various scenarios.
Historical Context
Financial analysts and policymakers use this trend to evaluate corporate credit conditions, potential economic risks, and overall market liquidity.
Key Facts
- BBB-rated bonds represent the lowest tier of investment-grade corporate debt
- The yield-to-worst metric helps investors understand potential minimum returns
- This index provides insights into corporate borrowing costs and 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. It accounts for potential scenarios like early redemption or call options.
Q: Why are BBB-rated bonds significant?
A: BBB-rated bonds are at the lowest investment-grade rating, sitting just above 'junk' status. They represent a critical threshold for institutional investors with rating-based investment restrictions.
Q: How often is this index updated?
A: The ICE BofA BBB US Corporate Index is typically updated semi-annually, providing a periodic snapshot of corporate bond market conditions.
Q: What can changes in this index indicate?
A: Significant changes can signal shifts in corporate credit risk, overall economic health, and investor confidence in corporate debt markets.
Q: Are there limitations to this index?
A: The index focuses specifically on BBB-rated bonds and may not fully represent the entire corporate bond market or higher/lower rating categories.
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Citation
U.S. Federal Reserve, ICE BofA BBB US Corporate Index Semi-Annual Yield to Worst [BAMLC0A4CBBBSYTW], retrieved from FRED.
Last Checked: 8/1/2025