Overnight AA Asset-Backed Commercial Paper Interest Rate
This dataset tracks overnight aa asset-backed commercial paper interest rate over time.
Latest Value
4.34
Year-over-Year Change
-0.23%
Date Range
1/2/2001 - 8/6/2025
Summary
The Overnight AA Asset-Backed Commercial Paper Interest Rate tracks the daily borrowing costs for high-quality, short-term corporate debt instruments. This metric provides critical insight into short-term credit market conditions and corporate borrowing expenses.
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 rate represents the interest rate for top-rated, asset-backed commercial paper with an overnight maturity. It reflects the cost of short-term corporate financing and serves as a key indicator of liquidity and credit market health.
Methodology
The rate is calculated daily by the Federal Reserve based on actual transactions and reported rates from major financial institutions.
Historical Context
Policymakers and investors use this rate to assess short-term credit market conditions and potential economic stress. It helps inform monetary policy decisions and investment strategies.
Key Facts
- Represents overnight borrowing rates for top-rated commercial paper
- Indicates short-term corporate credit market conditions
- Updated daily by the Federal Reserve
- Critical indicator for financial market liquidity
FAQs
Q: What does AA rating mean in this context?
A: AA rating indicates a high-quality, low-risk asset-backed commercial paper with strong creditworthiness and minimal default risk.
Q: How is this rate different from other interest rates?
A: This rate specifically focuses on overnight, asset-backed commercial paper for top-rated corporations, making it more specialized than broader interest rate measures.
Q: Why do investors care about this rate?
A: The rate provides insights into short-term borrowing costs, corporate financial health, and potential market liquidity challenges.
Q: How frequently is this rate updated?
A: The Overnight AA Asset-Backed Commercial Paper Interest Rate is updated daily by the Federal Reserve.
Q: Can this rate predict economic trends?
A: While not a definitive predictor, significant changes in this rate can signal emerging shifts in corporate financing and broader economic conditions.
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Citation
U.S. Federal Reserve, Overnight AA Asset-Backed Commercial Paper Interest Rate [RIFSPPAAAD01NB], retrieved from FRED.
Last Checked: 8/1/2025