60-Day AA Nonfinancial Commercial Paper Interest Rate
This dataset tracks 60-day aa nonfinancial commercial paper interest rate over time.
Latest Value
4.30
Year-over-Year Change
0.70%
Date Range
1/2/1997 - 7/31/2025
Summary
The 60-Day AA Nonfinancial Commercial Paper Interest Rate tracks the average interest rates for high-quality, short-term corporate debt instruments issued by non-financial companies. This metric provides critical insights into corporate borrowing costs and overall credit market conditions.
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, suggesting low default risk for these 60-day financial instruments.
Methodology
The rate is calculated by aggregating interest rates from multiple top-rated nonfinancial corporations issuing 60-day commercial paper, then computing a weighted average.
Historical Context
Economists and investors use this rate to assess corporate credit markets, gauge short-term borrowing costs, and understand potential economic stress or liquidity conditions.
Key Facts
- Represents 60-day unsecured corporate debt
- AA rating indicates high credit quality
- Reflects short-term corporate borrowing conditions
- Used by investors and economic analysts
FAQs
Q: What does a rising commercial paper rate indicate?
A: A rising rate typically suggests increased borrowing costs and potential economic tightening or perceived higher corporate risk.
Q: How often is this rate updated?
A: The rate is typically updated daily by the Federal Reserve, reflecting current market conditions.
Q: Why is the AA rating important?
A: The AA rating signifies high creditworthiness, indicating lower default risk compared to lower-rated commercial paper.
Q: Who uses this rate?
A: Investors, financial analysts, economists, and corporate treasurers use this rate to assess short-term lending conditions.
Q: How does this rate relate to monetary policy?
A: The rate can provide insights into overall credit market conditions and potential Federal Reserve monetary policy decisions.
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Citation
U.S. Federal Reserve, 60-Day AA Nonfinancial Commercial Paper Interest Rate [RIFSPPNAAD60NB], retrieved from FRED.
Last Checked: 8/1/2025