Overnight AA Financial Commercial Paper Interest Rate
This dataset tracks overnight aa financial commercial paper interest rate over time.
Latest Value
4.32
Year-over-Year Change
0.00%
Date Range
1/2/1998 - 8/5/2025
Summary
The Overnight AA Financial 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 corporate financing conditions and overall credit market liquidity.
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 issued by large financial institutions. The AA rating indicates a high-quality credit rating, reflecting lower default risk and more stable borrowing conditions.
Methodology
The rate is calculated daily by surveying financial institutions and tracking the prevailing interest rates for overnight commercial paper transactions.
Historical Context
Policymakers and investors use this rate to assess corporate credit market health and potential economic stress. It serves as an important indicator of short-term corporate borrowing costs and financial market sentiment.
Key Facts
- Represents overnight borrowing rates for top-rated financial commercial paper
- Provides real-time insight into corporate credit market conditions
- Reflects short-term financing costs for major financial institutions
- Considered a leading indicator of financial market health
FAQs
Q: What does an AA rating mean for commercial paper?
A: An AA rating indicates very high credit quality with minimal default risk, suggesting the issuing corporation has strong financial stability and creditworthiness.
Q: How frequently is this rate updated?
A: The Overnight AA Financial Commercial Paper Interest Rate is typically updated daily, reflecting current market conditions and short-term borrowing costs.
Q: Why do investors track this rate?
A: Investors monitor this rate to assess corporate financial health, potential economic trends, and short-term investment opportunities in the credit markets.
Q: How does this rate relate to monetary policy?
A: Central banks and policymakers use this rate as one of many indicators to understand credit market conditions and potential economic interventions.
Q: Can this rate predict economic downturns?
A: While not definitive, significant changes in this rate can signal potential stress in corporate financing and may precede broader economic shifts.
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Citation
U.S. Federal Reserve, Overnight AA Financial Commercial Paper Interest Rate [RIFSPPFAAD01NB], retrieved from FRED.
Last Checked: 8/1/2025