ICE BofA 1-3 Year US Corporate Index Semi-Annual Yield to Worst

BAMLC1A0C13YSYTW • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.30

Year-over-Year Change

-3.15%

Date Range

10/25/2021 - 8/6/2025

Summary

The ICE BofA 1-3 Year US Corporate Index Semi-Annual Yield to Worst tracks the lowest potential yield for corporate bonds with 1-3 year maturities. This metric provides critical insights into short-term corporate debt performance and market expectations for corporate credit risk.

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 investment-grade corporate bonds in the 1-3 year maturity range, calculated by Bank of America Merrill Lynch. Economists and investors use this metric to assess corporate credit markets, potential returns, and overall economic health.

Methodology

The index is calculated by identifying the lowest potential yield for corporate bonds, considering potential early redemption scenarios and current market conditions.

Historical Context

This trend is used by central banks, financial analysts, and investors to evaluate corporate credit markets, assess risk premiums, and inform investment strategies.

Key Facts

  • Covers investment-grade corporate bonds with 1-3 year maturities
  • Provides a conservative estimate of potential bond returns
  • Reflects current market conditions and corporate credit risk

FAQs

Q: What does 'Yield to Worst' mean?

A: Yield to Worst is the lowest potential yield an investor can receive from a bond without the issuer defaulting, accounting for potential early redemption scenarios.

Q: Why are 1-3 year corporate bonds significant?

A: These short-term bonds are considered less risky and more liquid, providing insights into near-term corporate financial health and market expectations.

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 investors use this index?

A: Investors use this index to compare potential returns, assess corporate credit risk, and make informed fixed-income investment decisions.

Q: What factors influence this index?

A: Interest rates, corporate financial performance, market sentiment, and overall economic conditions can significantly impact the index's value.

Related Trends

Citation

U.S. Federal Reserve, ICE BofA 1-3 Year US Corporate Index Semi-Annual Yield to Worst [BAMLC1A0C13YSYTW], retrieved from FRED.

Last Checked: 8/1/2025