ICE BofA BB US High Yield Index Effective Yield
This dataset tracks ice bofa bb us high yield index effective yield over time.
Latest Value
5.69
Year-over-Year Change
0.53%
Date Range
12/31/1996 - 8/6/2025
Summary
The ICE BofA BB US High Yield Index Effective Yield tracks the average yield of BB-rated corporate bonds in the U.S. high-yield market. This metric provides critical insight into borrowing costs and credit market conditions for lower-rated corporate 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 effective yield for BB-rated corporate bonds, which are considered 'junk' or speculative-grade securities just above investment grade. Economists and investors use this metric to assess credit market risk, corporate borrowing costs, and overall economic sentiment.
Methodology
The yield is calculated by ICE BofA using a weighted average of effective yields for BB-rated corporate bonds in the United States.
Historical Context
Financial analysts and policymakers use this index to evaluate credit market conditions, assess corporate financial health, and gauge potential economic risks.
Key Facts
- BB-rated bonds are considered speculative but have lower default risk than lower-rated securities
- The index reflects borrowing costs for companies with moderate credit risk
- Changes in the yield can signal broader economic and market sentiment shifts
FAQs
Q: What does a rising effective yield indicate?
A: A rising yield typically suggests increased perceived risk in the corporate bond market or higher borrowing costs for companies.
Q: How do BB-rated bonds differ from investment-grade bonds?
A: BB-rated bonds have higher default risk and offer higher yields compared to investment-grade bonds, which are considered more stable.
Q: How frequently is this index updated?
A: The ICE BofA index is typically updated daily, reflecting real-time changes in the high-yield bond market.
Q: Why do investors track this index?
A: Investors use this index to assess credit market conditions, evaluate potential investment opportunities, and understand broader economic trends.
Q: What limitations exist in interpreting this index?
A: The index only represents BB-rated bonds and may not fully capture the entire spectrum of corporate credit market conditions.
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Citation
U.S. Federal Reserve, ICE BofA BB US High Yield Index Effective Yield [BAMLH0A1HYBBEY], retrieved from FRED.
Last Checked: 8/1/2025