ICE BofA 3-5 Year US Corporate Index Effective Yield
BAMLC2A0C35YEY • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.51
Year-over-Year Change
-3.43%
Date Range
10/22/2021 - 8/5/2025
Summary
The ICE BofA 3-5 Year US Corporate Index Effective Yield represents the average yield of investment-grade corporate bonds with 3-5 year maturities. This metric provides critical insight 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
This index tracks the effective yield for investment-grade corporate bonds in the 3-5 year maturity range, offering a snapshot of corporate debt market dynamics. Economists and investors use this metric to assess corporate credit conditions, potential economic risks, and relative bond market attractiveness.
Methodology
The yield is calculated by Bank of America using a market-weighted approach across a broad range of investment-grade corporate bonds within the specified maturity range.
Historical Context
This index is frequently used by policymakers, investors, and financial analysts to evaluate corporate credit markets, assess potential economic shifts, and make strategic investment decisions.
Key Facts
- Covers investment-grade corporate bonds with 3-5 year maturities
- Provides a market-weighted average yield measurement
- Reflects current corporate borrowing costs and credit market conditions
FAQs
Q: What does this index tell investors?
A: The index reveals the average yield for investment-grade corporate bonds, indicating current borrowing costs and credit market sentiment.
Q: How often is this index updated?
A: The index is typically updated daily, reflecting real-time changes in corporate bond market conditions.
Q: Why are 3-5 year corporate bonds significant?
A: This maturity range represents a critical medium-term investment horizon that balances yield potential with moderate interest rate risk.
Q: How do changes in this index impact investors?
A: Rising yields can indicate increased borrowing costs or perceived credit risks, while falling yields might suggest more favorable lending conditions.
Q: What limitations exist in this index?
A: The index only covers investment-grade bonds and may not fully represent high-yield or international corporate debt markets.
Related Trends
40-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB40YR
38-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB38YR
64.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB64Y6M
37-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB37YR
52-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB52YR
78.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB78Y6M
Citation
U.S. Federal Reserve, ICE BofA 3-5 Year US Corporate Index Effective Yield [BAMLC2A0C35YEY], retrieved from FRED.
Last Checked: 8/1/2025