30-Day AA Financial Commercial Paper Interest Rate

DCPF1M • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.34

Year-over-Year Change

0.46%

Date Range

10/8/2021 - 8/1/2025

Summary

The 30-Day AA Financial Commercial Paper Interest Rate tracks the average interest rate for high-quality, short-term corporate debt instruments. This metric provides critical insight into short-term corporate borrowing costs and overall credit market 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

Commercial paper represents unsecured, short-term corporate debt typically used for working capital and operational financing. The AA rating indicates the highest quality of short-term corporate debt, reflecting minimal default risk and strong corporate financial health.

Methodology

The rate is calculated by averaging interest rates for top-rated 30-day commercial paper issued by major corporations, collected and reported by the Federal Reserve.

Historical Context

Economists and financial analysts use this rate to assess corporate credit market liquidity and gauge short-term borrowing conditions. Central banks and investors monitor this trend to understand corporate financial health and potential economic pressures.

Key Facts

  • Represents 30-day unsecured corporate debt rates
  • AA rating indicates highest short-term credit quality
  • Reflects corporate borrowing conditions
  • Used by investors and policymakers to assess economic health

FAQs

Q: What does a rising commercial paper rate indicate?

A: A rising rate typically suggests increased borrowing costs and potential tightening credit market conditions for corporations.

Q: Why is the AA rating important?

A: The AA rating signifies extremely low default risk and high creditworthiness of the issuing corporations.

Q: How frequently is this rate updated?

A: The commercial paper rate is typically updated daily by the Federal Reserve, reflecting current market conditions.

Q: Who uses this financial indicator?

A: Investors, financial analysts, economists, and policymakers use this rate to assess corporate financial health and credit market trends.

Q: How does this rate relate to broader economic conditions?

A: The commercial paper rate can serve as an early indicator of economic stress or stability in corporate financing markets.

Related Trends

Citation

U.S. Federal Reserve, 30-Day AA Financial Commercial Paper Interest Rate [DCPF1M], retrieved from FRED.

Last Checked: 8/1/2025