15-Day AA Financial Commercial Paper Interest Rate
This dataset tracks 15-day aa financial commercial paper interest rate over time.
Latest Value
4.32
Year-over-Year Change
0.23%
Date Range
1/2/1997 - 8/6/2025
Summary
The 15-Day AA Financial Commercial Paper Interest Rate tracks the short-term borrowing costs for high-quality corporate debt instruments. This metric provides critical insight into corporate financing conditions and overall credit market health.
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 debt issued by corporations to fund immediate operational needs. The AA rating indicates a high-quality credit rating, reflecting lower default risk and more favorable lending terms.
Methodology
The rate is calculated based on the average interest rates for 15-day commercial paper issued by top-rated financial institutions, collected and reported by the Federal Reserve.
Historical Context
Economists and financial analysts use this rate to assess corporate liquidity, credit market conditions, and potential shifts in monetary policy. It serves as a key indicator of short-term corporate borrowing costs.
Key Facts
- Represents 15-day borrowing rates for top-rated financial institutions
- Provides insight into corporate credit market conditions
- Reflects short-term lending costs and financial market health
- Used by economists to assess corporate liquidity
FAQs
Q: What does the AA rating mean in this context?
A: AA rating indicates a high-quality credit rating with low default risk, suggesting the borrowing entity has strong financial stability and creditworthiness.
Q: How often is this rate updated?
A: The rate is typically updated daily by the Federal Reserve, reflecting current market conditions and short-term lending costs.
Q: Why do investors care about commercial paper rates?
A: Investors use these rates to assess corporate financial health, potential investment returns, and overall credit market conditions.
Q: How does this rate relate to monetary policy?
A: The commercial paper rate can influence and reflect Federal Reserve monetary policy decisions, particularly regarding interest rates and credit market interventions.
Q: Can this rate predict economic trends?
A: While not a definitive predictor, changes in commercial paper rates can signal broader economic shifts in corporate financing and market liquidity.
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Citation
U.S. Federal Reserve, 15-Day AA Financial Commercial Paper Interest Rate [RIFSPPFAAD15NB], retrieved from FRED.
Last Checked: 8/1/2025