Moody's Seasoned Baa Corporate Bond Yield
This dataset tracks moody's seasoned baa corporate bond yield over time.
Latest Value
5.94
Year-over-Year Change
-3.73%
Date Range
1/2/1986 - 8/5/2025
Summary
The Moody's Seasoned Baa Corporate Bond Yield tracks the average yield of corporate bonds rated Baa by Moody's, representing medium-grade corporate debt. This metric is crucial for understanding corporate borrowing costs and broader market credit conditions.
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 yield reflects the interest rate corporations must pay to borrow money through bond issuance at a moderate credit rating level. Economists and investors use it as a key indicator of corporate financial health and overall economic risk perception.
Methodology
The data is calculated by Moody's Investors Service by averaging the yields of Baa-rated corporate bonds across various maturities and industries.
Historical Context
Central banks and financial analysts use this yield to assess credit market conditions, corporate financial stress, and potential economic turning points.
Key Facts
- Baa bonds represent medium-grade, moderate credit risk investments
- Yield changes can signal broader economic sentiment and credit market conditions
- Typically higher than government bond yields due to increased corporate risk
FAQs
Q: What does a Baa bond rating mean?
A: A Baa rating indicates moderate credit quality with medium investment risk. These bonds are considered medium-grade and have moderate speculative characteristics.
Q: How do changes in this yield impact investors?
A: Rising yields suggest increased corporate borrowing costs and potential economic uncertainty, while falling yields can indicate more stable credit markets and lower perceived risk.
Q: How often is this data updated?
A: The Moody's Seasoned Baa Corporate Bond Yield is typically updated daily and reported on a monthly basis by the Federal Reserve.
Q: Why do economists track this metric?
A: This yield provides insights into corporate financial health, credit market conditions, and potential economic trends or stress points.
Q: What factors influence this bond yield?
A: Factors include overall economic conditions, interest rates, corporate financial performance, and broader market risk perceptions.
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Citation
U.S. Federal Reserve, Moody's Seasoned Baa Corporate Bond Yield [DBAA], retrieved from FRED.
Last Checked: 8/1/2025