ICE BofA 3-5 Year US Corporate Index Semi-Annual Yield to Worst
This dataset tracks ice bofa 3-5 year us corporate index semi-annual yield to worst over time.
Latest Value
4.48
Year-over-Year Change
-3.03%
Date Range
12/31/1996 - 8/6/2025
Summary
The ICE BofA 3-5 Year US Corporate Index Semi-Annual Yield to Worst tracks the lowest potential yield for corporate bonds in the 3-5 year maturity range. This metric provides critical insight into corporate debt market conditions and investor risk expectations.
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 metric represents the minimum potential return an investor can expect from corporate bonds within a specific maturity segment. 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 sampling of corporate bonds, measuring the lowest potential yield across different market scenarios.
Historical Context
This trend is used by central banks, investment managers, and policymakers to evaluate corporate credit markets and potential economic stress indicators.
Key Facts
- Covers corporate bonds with 3-5 year maturities
- Provides a conservative yield estimate for investors
- Reflects current market risk and credit 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 3-5 year corporate bonds significant?
A: This maturity range represents a medium-term investment horizon that balances potential returns with moderate risk, making it attractive for many institutional and individual investors.
Q: How often is this index updated?
A: The index is typically updated semi-annually, providing a periodic snapshot of corporate bond market conditions and potential yields.
Q: How do changes in this index impact investment strategies?
A: Fluctuations in the yield can signal shifts in corporate credit risk, influencing investment allocation decisions and portfolio management strategies.
Q: What are the limitations of this index?
A: The index focuses on a specific maturity range and does not represent the entire corporate bond market, so it should be used in conjunction with other market indicators.
Related News
U.S. S&P 500 Stock Movements: Paramount and Apple Surge
Apple and Paramount Stocks Bolster the S&P 500: Analyzing Market Movements The S&P 500 recently experienced a boost thanks to significant stock movements from Apple and Paramount. As a key indicator of the U.S. stock market, the S&P 500's rise reflects broader economic dynamics. Notably, Apple's stock benefited from the recent iPhone 17 launch, while Paramount's corporate strategies have also captured investor attention. These developments underscore the interconnected nature of market trends,
US Housing Giant Hopes Fed Policies Boost Sagging Profits
Revitalizing S&P 500 Housing with Federal Reserve Policies The primary keyword, "Treasury Yield," has become an increasingly critical focus within the realm of the S&P 500 housing market. Current fluctuations in bond rates, particularly the 10-year bond rate, are causing waves in the already volatile US housing market. This situation is marked by a profit decline experienced by major housing giants, as economic uncertainty steers investor confidence. The Federal Reserve's policies and interest
Impact of U.S. Treasury Yields Rise After Fed Rate Cut
The Impact of a Treasury Yield Rise on the U.S. Economy After a Fed Rate Cut The current rise in the 10-year Treasury bond rate has caught the attention of economists, investors, and policymakers alike. Treasury yields, particularly the 10-year Treasury bond rate, act as a key indicator of the economic outlook in the United States. They affect interest rates, the bond market, and expectations for inflation. Understanding their fluctuations can offer insight into financial markets and help guide
U.S. Housing Leader Relies on Fed Amid Profit Challenges
Navigating the Impact of Federal Reserve Policies on a Leading S&P 500 Housing Company The Federal Reserve's decisions often hold the key to the economic direction of entire industries. As a prime example, consider how these policies affect a major S&P 500 housing company currently grappling with profit declines. This scenario underscores the critical role of Federal Reserve actions, including adjustments to the effective Federal Funds Rate, in shaping corporate strategies amid financial diffic
U.S. Treasury Yields Rise After Fed Rate Cut Analysis
Treasury Yields Surge: A Curious Twist in Monetary Policy Amid a surprising financial twist, the current 10 year treasury rate is on the rise even as the Federal Reserve cuts interest rates. This unexpected development has economists scratching their heads, as typically, a cut in the Federal funds rate leads to lower yields. Treasury yields represent the interest rate the government pays bondholders, functioning as a vital signpost for the health of the economy. Generally perceived as one of th
Yield curve steepening benefits US value and small-cap stocks
The Steepening Yield Curve in Today's Economy The recent rise in the 10-year U.S. Treasury bond yield sparks renewed interest in its impact on the financial markets. A steepening yield curve, where the gap between short-term and long-term interest rates widens, is grabbing investors' attention. While it usually suggests a positive outlook for economic growth, the implications for different segments of the stock market, such as value and small-cap stocks, can be significant. This shift in the yi
Related Trends
Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
CPIAUCNS
Capacity Utilization: Total Index
TCU
Commercial and Industrial Loans, All Commercial Banks
TOTCI
Share of Foreign Born in Home Owners Loan Corporation (HOLC) Neighborhood A
RLMSHFBHOLCNA
Home Ownership Rate in Home Owners Loan Corporation (HOLC) Neighborhood C
RLMSHHORHOLCNC
Share of Foreign Born in Home Owners Loan Corporation (HOLC) Neighborhood C
RLMSHFBHOLCNC
Citation
U.S. Federal Reserve, ICE BofA 3-5 Year US Corporate Index Semi-Annual Yield to Worst [BAMLC2A0C35YSYTW], retrieved from FRED.
Last Checked: 8/1/2025