ICE BofA US High Yield Index Semi-Annual Yield to Worst

BAMLH0A0HYM2SYTW • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

6.99

Year-over-Year Change

-0.57%

Date Range

10/26/2021 - 8/7/2025

Summary

The ICE BofA US High Yield Index Semi-Annual Yield to Worst measures the average yield of high-risk corporate bonds in the United States. This metric provides critical insight into the risk and potential returns of speculative-grade debt 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

This index tracks the yield of below-investment-grade corporate bonds, reflecting the potential returns and risk appetite in the high-yield debt market. Economists and investors use this metric to assess credit market conditions and potential economic stress.

Methodology

The index is calculated by Bank of America using a representative sample of high-yield corporate bonds, computing the lowest potential yield under various scenarios.

Historical Context

Policymakers and financial analysts use this trend to gauge corporate credit risk, market sentiment, and potential economic challenges.

Key Facts

  • Represents yields for below-investment-grade corporate bonds
  • Provides insight into credit market risk and investor sentiment
  • Calculated semi-annually to reflect changing market conditions

FAQs

Q: What does 'Yield to Worst' mean?

A: Yield to Worst represents the lowest potential yield an investor could receive from a bond without the issuer defaulting, accounting for potential early redemption scenarios.

Q: Why are high-yield bonds considered risky?

A: High-yield bonds are issued by companies with lower credit ratings, meaning they have a higher probability of default compared to investment-grade bonds.

Q: How often is this index updated?

A: The ICE BofA US High Yield Index is updated semi-annually, providing a periodic snapshot of the high-yield bond market.

Q: How do investors use this index?

A: Investors use this index to assess potential returns, evaluate market risk, and make informed decisions about investing in high-yield corporate bonds.

Q: What factors influence the yield of high-yield bonds?

A: Factors include corporate financial health, overall economic conditions, interest rates, and investor risk appetite.

Related Trends

Citation

U.S. Federal Reserve, ICE BofA US High Yield Index Semi-Annual Yield to Worst [BAMLH0A0HYM2SYTW], retrieved from FRED.

Last Checked: 8/1/2025