ICE BofA BB US High Yield Index Semi-Annual Yield to Worst
This dataset tracks ice bofa bb us high yield index semi-annual yield to worst over time.
Latest Value
5.91
Year-over-Year Change
-0.51%
Date Range
12/31/1996 - 8/5/2025
Summary
The ICE BofA BB US High Yield Index Semi-Annual Yield to Worst measures the average yield of BB-rated corporate bonds in the U.S. high-yield market. This metric provides critical insight into the risk and return expectations for lower-rated corporate debt instruments.
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 BB-rated corporate bonds, which are considered 'junk' or speculative-grade securities with higher default risk. Economists and investors use this metric to assess credit market conditions, corporate financial health, and potential investment opportunities.
Methodology
The index is calculated by Bank of America using a semi-annual sampling of BB-rated corporate bonds, computing the lowest potential yield under various scenarios.
Historical Context
Financial analysts and policymakers use this index to gauge corporate credit market conditions, assess economic risk, and inform investment and monetary policy decisions.
Key Facts
- BB-rated bonds are considered speculative but higher quality within the junk bond category
- The index provides a semi-annual snapshot of potential bond yields
- Higher yields typically indicate increased market risk or economic uncertainty
FAQs
Q: What does 'Yield to Worst' mean?
A: Yield to Worst represents the lowest potential yield an investor could receive from a bond without the issuer defaulting, accounting for potential early redemption scenarios.
Q: Why are BB-rated bonds considered important?
A: BB-rated bonds sit at the higher end of the speculative-grade market, offering insights into corporate financial health and market risk tolerance.
Q: How often is this index updated?
A: The index is calculated semi-annually, providing periodic snapshots of corporate bond market conditions.
Q: What can high yields indicate?
A: High yields often suggest increased market risk, economic uncertainty, or higher perceived likelihood of corporate default.
Q: How do investors use this index?
A: Investors use this index to assess potential returns, evaluate credit market conditions, and make informed investment decisions in corporate bonds.
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Citation
U.S. Federal Reserve, ICE BofA BB US High Yield Index Semi-Annual Yield to Worst [BAMLH0A1HYBBSYTW], retrieved from FRED.
Last Checked: 8/1/2025