60-Day AA Financial Commercial Paper Interest Rate
This dataset tracks 60-day aa financial commercial paper interest rate over time.
Latest Value
4.29
Year-over-Year Change
-0.46%
Date Range
1/2/1997 - 7/31/2025
Summary
The 60-Day AA Financial Commercial Paper Interest Rate tracks the average interest rate for high-quality, short-term corporate debt instruments issued by top-rated financial institutions. This metric provides critical insight into short-term borrowing costs and overall financial 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 an unsecured, short-term debt instrument issued by corporations to fund immediate operational needs. The AA rating indicates a high credit quality, making these financial instruments attractive to risk-averse investors seeking relatively stable short-term investments.
Methodology
The rate is calculated by aggregating interest rates from multiple financial institutions for 60-day commercial paper, weighted by transaction volume and credit quality.
Historical Context
Policymakers and investors closely monitor this rate as an indicator of corporate financial health and short-term credit market conditions. It serves as a key benchmark for assessing corporate borrowing costs and overall economic liquidity.
Key Facts
- Represents 60-day financial commercial paper for top-rated corporations
- Provides insight into short-term corporate borrowing conditions
- Reflects current credit market sentiment and liquidity
- Useful for investors and economic analysts tracking financial trends
FAQs
Q: What does AA rating mean for commercial paper?
A: AA rating indicates high credit quality and low default risk, suggesting the issuing corporation has strong financial stability and creditworthiness.
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 do investors care about commercial paper rates?
A: Investors use these rates to assess short-term investment opportunities, corporate financial health, and potential returns with minimal risk.
Q: How does this rate relate to broader economic conditions?
A: The commercial paper rate can indicate overall economic liquidity, corporate financial health, and potential shifts in monetary policy.
Q: Can individual investors access commercial paper?
A: Most commercial paper is traded by institutional investors, but individuals can gain exposure through money market funds and certain mutual funds.
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Citation
U.S. Federal Reserve, 60-Day AA Financial Commercial Paper Interest Rate [RIFSPPFAAD60NB], retrieved from FRED.
Last Checked: 8/1/2025