Overnight AA Nonfinancial Commercial Paper Interest Rate
This dataset tracks overnight aa nonfinancial commercial paper interest rate over time.
Latest Value
4.32
Year-over-Year Change
-0.23%
Date Range
1/2/1998 - 8/6/2025
Summary
The Overnight AA Nonfinancial Commercial Paper Interest Rate tracks the short-term borrowing costs for high-quality nonfinancial companies. This metric provides critical insight into corporate credit conditions and short-term lending markets.
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, reflecting the most creditworthy nonfinancial companies in the market.
Methodology
The rate is calculated daily by surveying market transactions and representing the weighted average interest rate for top-rated commercial paper with a one-day maturity.
Historical Context
Policymakers and investors use this rate to assess corporate liquidity, credit market health, and potential economic stress in short-term lending environments.
Key Facts
- Represents overnight borrowing costs for top-rated nonfinancial corporations
- Provides real-time insight into corporate credit market conditions
- Reflects short-term lending rates for high-quality companies
- Serves as a key indicator of corporate financial health
FAQs
Q: What does a rising commercial paper rate indicate?
A: A rising rate typically suggests increased borrowing costs and potential tightening of credit markets for corporations.
Q: How is this rate different from other interest rates?
A: This rate specifically measures short-term, unsecured lending for top-rated nonfinancial companies, distinguishing it from broader interest rate measures.
Q: Why is the AA rating important?
A: The AA rating indicates extremely high credit quality, representing the most financially stable and low-risk corporate borrowers.
Q: How frequently is this rate updated?
A: The rate is typically calculated and updated on a daily basis to reflect current market conditions.
Q: Who uses this commercial paper rate?
A: Investors, financial analysts, economists, and policymakers use this rate to assess corporate lending conditions and economic health.
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Citation
U.S. Federal Reserve, Overnight AA Nonfinancial Commercial Paper Interest Rate [RIFSPPNAAD01NB], retrieved from FRED.
Last Checked: 8/1/2025