ICE BofA US High Yield Index Effective Yield
This dataset tracks ice bofa us high yield index effective yield over time.
Latest Value
6.79
Year-over-Year Change
-1.59%
Date Range
12/31/1996 - 8/5/2025
Summary
The ICE BofA US High Yield Index Effective Yield represents the average yield of high-risk, non-investment grade corporate bonds in the United States. This metric provides critical insight into credit market conditions and investor risk perception.
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 of below-investment-grade corporate bonds, commonly known as 'junk bonds', which offer higher returns to compensate for increased default risk. Economists and investors use this metric to assess overall corporate financial health and credit market sentiment.
Methodology
The yield is calculated by weighing the effective interest rates of high-yield corporate bonds across various sectors and maturities in the U.S. market.
Historical Context
Financial analysts and policymakers use this index to gauge corporate borrowing costs, credit market stress, and potential economic volatility.
Key Facts
- Represents non-investment grade corporate bond yields
- Higher yields indicate greater perceived market risk
- Reflects broader economic and corporate financial conditions
FAQs
Q: What are high-yield bonds?
A: High-yield bonds are corporate debt securities rated below investment grade, offering higher interest rates to compensate for increased default risk.
Q: Why do investors care about this index?
A: The index provides insights into corporate borrowing costs and overall market risk appetite, helping investors make informed investment decisions.
Q: How often is this data updated?
A: The ICE BofA US High Yield Index is typically updated daily, reflecting real-time changes in corporate bond market conditions.
Q: What does a rising yield indicate?
A: A rising yield suggests increasing perceived risk in the corporate bond market, potentially signaling economic uncertainty or sector-specific challenges.
Q: Are high-yield bonds suitable for all investors?
A: High-yield bonds carry higher risk and are generally recommended only for investors with higher risk tolerance and diversified investment strategies.
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Citation
U.S. Federal Reserve, ICE BofA US High Yield Index Effective Yield [BAMLH0A0HYM2EY], retrieved from FRED.
Last Checked: 8/1/2025