ICE BofA CCC & Lower US High Yield Index Effective Yield
This dataset tracks ice bofa ccc & lower us high yield index effective yield over time.
Latest Value
12.19
Year-over-Year Change
-2.25%
Date Range
12/31/1996 - 8/5/2025
Summary
The ICE BofA CCC & Lower US High Yield Index Effective Yield tracks the average yield of the riskiest corporate bonds in the United States. This metric provides critical insight into credit market conditions and investor risk perception for low-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 CCC or lower, which are considered speculative or 'junk' grade securities. Economists and investors use this indicator to assess credit market stress, default risk, and overall economic financial health.
Methodology
The yield is calculated by Bank of America using a weighted average of effective yields for bonds in the lowest credit rating categories.
Historical Context
Financial analysts and policymakers use this index to gauge market sentiment, potential economic distress, and credit market liquidity.
Key Facts
- Represents the lowest-rated corporate bonds in the market
- Indicates potential economic stress and investor risk tolerance
- Provides insight into credit market conditions
FAQs
Q: What does a high yield on this index mean?
A: A high yield suggests increased perceived risk in the corporate bond market, potentially indicating economic uncertainty or financial stress.
Q: How often is this index updated?
A: The index is typically updated daily, reflecting real-time changes in the high-yield bond market.
Q: Why do investors care about CCC-rated bonds?
A: These bonds offer higher potential returns but come with significantly higher default risk compared to investment-grade securities.
Q: How does this index relate to overall economic health?
A: The index can serve as an early warning indicator of potential economic downturns or financial market stress.
Q: What are the limitations of this index?
A: The index only represents the lowest-rated bonds and may not fully capture the entire corporate bond market's complexity.
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Citation
U.S. Federal Reserve, ICE BofA CCC & Lower US High Yield Index Effective Yield [BAMLH0A3HYCEY], retrieved from FRED.
Last Checked: 8/1/2025