ICE BofA 5-7 Year US Corporate Index Semi-Annual Yield to Worst
This dataset tracks ice bofa 5-7 year us corporate index semi-annual yield to worst over time.
Latest Value
4.76
Year-over-Year Change
-3.64%
Date Range
12/31/1996 - 8/5/2025
Summary
The ICE BofA 5-7 Year US Corporate Index Semi-Annual Yield to Worst tracks the lowest potential yield for corporate bonds in the 5-7 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 index represents the yield-to-worst for investment-grade corporate bonds with maturities between 5 and 7 years, capturing potential returns under various market scenarios. Economists and investors use this metric to assess corporate credit risk and overall market sentiment.
Methodology
The yield is calculated by Bank of America using a comprehensive analysis of corporate bond pricing, considering potential call dates and lowest possible yield scenarios.
Historical Context
This index is frequently used by central banks, investment managers, and policymakers to evaluate corporate credit markets and potential economic trends.
Key Facts
- Covers investment-grade corporate bonds in 5-7 year maturity range
- Provides lowest potential yield scenario for corporate debt
- Reflects market expectations of corporate credit risk
FAQs
Q: What does 'Yield to Worst' mean?
A: Yield to Worst represents the lowest potential yield an investor might receive from a bond without the issuer defaulting, accounting for potential early redemption scenarios.
Q: Why are 5-7 year corporate bonds significant?
A: This maturity range represents a medium-term investment horizon that balances potential returns with moderate interest rate and credit risk.
Q: How often is this index updated?
A: The index is typically updated semi-annually, providing periodic snapshots of corporate bond market conditions.
Q: How do investors use this index?
A: Investors use this index to assess corporate credit risk, compare bond performance, and make informed investment decisions in fixed-income markets.
Q: What factors influence this yield?
A: Interest rates, corporate financial health, market sentiment, and overall economic conditions can significantly impact the yield-to-worst for corporate bonds.
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Citation
U.S. Federal Reserve, ICE BofA 5-7 Year US Corporate Index Semi-Annual Yield to Worst [BAMLC3A0C57YSYTW], retrieved from FRED.
Last Checked: 8/1/2025