ICE BofA Single-B US High Yield Index Effective Yield
This dataset tracks ice bofa single-b us high yield index effective yield over time.
Latest Value
6.87
Year-over-Year Change
0.15%
Date Range
12/31/1996 - 8/7/2025
Summary
The ICE BofA Single-B US High Yield Index Effective Yield tracks the average yield of single-B rated corporate bonds in the U.S. high-yield bond market. This metric provides critical insight into the risk and return characteristics of 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 corporate bonds rated single-B, which are considered speculative or 'junk' grade investments. Economists and investors use this metric to gauge credit market conditions, risk appetite, and potential economic stress in corporate borrowing.
Methodology
The yield is calculated by Bank of America using a weighted average of effective yields for single-B rated bonds in the U.S. corporate bond market.
Historical Context
Financial analysts and policymakers use this index to assess credit market conditions, corporate financial health, and potential economic risks.
Key Facts
- Single-B rated bonds are considered speculative-grade investments
- Higher yields typically indicate higher perceived risk
- Reflects the cost of borrowing for lower-rated corporate entities
FAQs
Q: What does a single-B rating mean?
A: A single-B rating indicates a speculative or 'junk' grade bond with significant credit risk and higher likelihood of default compared to investment-grade bonds.
Q: Why do investors care about this index?
A: Investors use this index to assess credit market conditions, potential investment returns, and overall economic risk in corporate debt markets.
Q: How often is this index updated?
A: The index is typically updated daily, reflecting real-time changes in corporate bond yields and market conditions.
Q: What impacts the effective yield of these bonds?
A: Factors like corporate financial performance, overall economic conditions, interest rates, and market sentiment can influence the effective yield.
Q: Are higher yields always better for investors?
A: Higher yields indicate higher potential returns but also come with increased risk of default, requiring careful analysis by investors.
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Citation
U.S. Federal Reserve, ICE BofA Single-B US High Yield Index Effective Yield [BAMLH0A2HYBEY], retrieved from FRED.
Last Checked: 8/1/2025