ICE BofA US Corporate Index Effective Yield

BAMLC0A0CMEY • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.94

Year-over-Year Change

-2.56%

Date Range

10/25/2021 - 8/6/2025

Summary

The ICE BofA US Corporate Index Effective Yield represents the average yield of investment-grade corporate bonds in the United States. This metric provides critical insight into corporate borrowing costs and overall market sentiment for corporate debt.

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

This index tracks the effective yield across a broad spectrum of US corporate bonds, reflecting the average interest rate companies must pay to borrow money. Economists and investors closely monitor this trend as a barometer of corporate financial health and broader economic conditions.

Methodology

The yield is calculated by weighing the effective interest rates of investment-grade corporate bonds in the ICE BofA index, accounting for various maturities and credit qualities.

Historical Context

Policymakers and financial analysts use this index to assess corporate credit markets, monetary policy implications, and potential economic risks.

Key Facts

  • Represents average yields for investment-grade US corporate bonds
  • Reflects corporate borrowing costs and market sentiment
  • Influenced by factors like interest rates, credit risk, and economic conditions

FAQs

Q: What does the ICE BofA US Corporate Index Effective Yield indicate?

A: It shows the average interest rate for investment-grade corporate bonds, reflecting borrowing costs and market conditions for US corporations.

Q: How do changes in this yield impact investors?

A: Higher yields suggest increased borrowing costs and potentially higher risk, while lower yields indicate more favorable borrowing conditions for corporations.

Q: How is this index calculated?

A: The index weighs effective interest rates across various investment-grade corporate bonds, considering factors like maturity and credit quality.

Q: Why do economists track this metric?

A: It provides insights into corporate financial health, credit market conditions, and potential economic trends or risks.

Q: How frequently is this data updated?

A: The index is typically updated daily, reflecting real-time changes in corporate bond markets.

Related Trends

Citation

U.S. Federal Reserve, ICE BofA US Corporate Index Effective Yield [BAMLC0A0CMEY], retrieved from FRED.

Last Checked: 8/1/2025