7-Day AA Asset-Backed Commercial Paper Interest Rate
This dataset tracks 7-day aa asset-backed commercial paper interest rate over time.
Latest Value
4.36
Year-over-Year Change
0.00%
Date Range
1/2/2001 - 8/5/2025
Summary
The 7-Day AA Asset-Backed Commercial Paper Interest Rate tracks short-term borrowing costs for high-quality commercial paper. This metric provides critical insight into short-term credit market conditions and corporate funding dynamics.
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 interest rate represents the average yield for top-rated 7-day asset-backed commercial paper issued by leading financial institutions. It serves as a key indicator of short-term lending rates and overall market liquidity in the corporate debt market.
Methodology
The rate is calculated by aggregating interest rates from multiple financial institutions for 7-day commercial paper with an AA or equivalent credit rating.
Historical Context
Economists and policymakers use this rate to assess short-term credit market health and potential shifts in corporate borrowing conditions. It helps inform monetary policy and provides insights into broader financial market trends.
Key Facts
- Represents 7-day borrowing rates for top-rated commercial paper
- Indicates short-term credit market conditions
- Reflects corporate funding costs and market liquidity
- Used by economists to assess financial market health
FAQs
Q: What does AA rating mean in this context?
A: AA rating indicates a high-quality, low-risk commercial paper with strong creditworthiness and minimal default probability.
Q: How often is this rate updated?
A: The rate is typically updated daily, reflecting current market conditions and short-term lending dynamics.
Q: Why are 7-day rates important?
A: 7-day rates provide a snapshot of very short-term borrowing costs, offering quick insights into immediate market liquidity.
Q: How do changes in this rate impact businesses?
A: Fluctuations can affect borrowing costs, corporate cash management strategies, and overall financial planning for companies.
Q: Can individual investors use this rate?
A: While primarily used by financial professionals, the rate can help investors understand broader market conditions and potential investment opportunities.
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Citation
U.S. Federal Reserve, 7-Day AA Asset-Backed Commercial Paper Interest Rate [RIFSPPAAAD07NB], retrieved from FRED.
Last Checked: 8/1/2025