ICE BofA Euro High Yield Index Semi-Annual Yield to Worst
This dataset tracks ice bofa euro high yield index semi-annual yield to worst over time.
Latest Value
4.96
Year-over-Year Change
-4.43%
Date Range
12/31/1997 - 8/6/2025
Summary
The ICE BofA Euro High Yield Index Semi-Annual Yield to Worst tracks the yield performance of high-risk European corporate bonds under conservative assumptions. This metric provides critical insights into the risk and potential returns of European corporate debt markets.
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 lowest potential yield for high-yield (or 'junk') European corporate bonds, calculated assuming the most pessimistic bond call scenarios. Economists and investors use this metric to assess credit market risk, investor sentiment, and potential economic stress in European corporate sectors.
Methodology
The index is calculated by Bank of America using a comprehensive analysis of European corporate bond yields, considering potential early redemption scenarios that would minimize investor returns.
Historical Context
Financial analysts and central banks use this index to evaluate credit market conditions, assess corporate financial health, and inform investment and monetary policy decisions.
Key Facts
- Measures the lowest potential yield for European high-yield corporate bonds
- Provides a conservative estimate of bond market performance
- Useful for assessing credit market risk and investor sentiment
FAQs
Q: What does 'Yield to Worst' mean?
A: Yield to Worst represents the lowest potential yield an investor can receive from a bond without the issuer defaulting, assuming the most conservative scenarios for bond calls and redemptions.
Q: Why are high-yield bonds considered risky?
A: High-yield bonds are issued by companies with lower credit ratings, meaning they have a higher risk of default compared to investment-grade bonds, but potentially offer higher returns to compensate for that risk.
Q: How often is this index updated?
A: The ICE BofA Euro High Yield Index is typically updated semi-annually, providing a periodic snapshot of European corporate bond market conditions.
Q: How do investors use this index?
A: Investors use this index to assess potential risks and returns in European corporate bond markets, helping them make informed investment decisions and portfolio allocation strategies.
Q: What limitations does this index have?
A: The index focuses specifically on European high-yield bonds and may not fully represent global bond market conditions or individual company performance.
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Citation
U.S. Federal Reserve, ICE BofA Euro High Yield Index Semi-Annual Yield to Worst [BAMLHE00EHYISYTW], retrieved from FRED.
Last Checked: 8/1/2025