90-Day AA Nonfinancial Commercial Paper Interest Rate
This dataset tracks 90-day aa nonfinancial commercial paper interest rate over time.
Latest Value
4.26
Year-over-Year Change
-1.16%
Date Range
1/2/1997 - 7/29/2025
Summary
The 90-Day AA Nonfinancial Commercial Paper Interest Rate tracks the average interest rate for high-quality, short-term corporate debt instruments issued by non-financial companies. This metric provides critical insight into 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 an unsecured, short-term promissory note issued by corporations to finance short-term liabilities. The AA rating indicates a high credit quality, making this rate a key indicator of corporate financial health and short-term lending dynamics.
Methodology
The rate is calculated by averaging interest rates for 90-day commercial paper issued by top-rated non-financial corporations, collected and reported by the Federal Reserve.
Historical Context
Economists and policymakers use this rate to assess corporate credit conditions and potential economic stress in short-term lending markets. It serves as a barometer for corporate financial liquidity and broader economic sentiment.
Key Facts
- Represents 90-day unsecured corporate debt instruments
- AA rating indicates high credit quality
- Reflects short-term corporate borrowing conditions
- Updated regularly by the Federal Reserve
FAQs
Q: What does an increasing commercial paper rate indicate?
A: An increasing rate typically suggests higher perceived corporate risk or tightening credit market conditions.
Q: How is commercial paper different from bonds?
A: Commercial paper is a shorter-term, unsecured debt instrument with typically lower interest rates compared to longer-term corporate bonds.
Q: Who uses commercial paper?
A: Large corporations use commercial paper to fund short-term obligations like inventory purchases, payroll, and other operational expenses.
Q: How often is the DCPN3M rate updated?
A: The rate is typically updated weekly by the Federal Reserve, reflecting current market conditions.
Q: Why is the AA rating important?
A: The AA rating indicates high creditworthiness, suggesting lower default risk and more favorable borrowing terms for corporations.
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Citation
U.S. Federal Reserve, 90-Day AA Nonfinancial Commercial Paper Interest Rate [DCPN3M], retrieved from FRED.
Last Checked: 8/1/2025