ICE BofA Euro High Yield Index Effective Yield

BAMLHE00EHYIEY • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

4.96

Year-over-Year Change

-2.55%

Date Range

10/22/2021 - 8/5/2025

Summary

The ICE BofA Euro High Yield Index Effective Yield tracks the average yield of high-risk, high-return European corporate bonds. This metric provides critical insights into credit market conditions and investor risk appetite in the European corporate debt landscape.

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 represents the weighted average effective yield of euro-denominated, below-investment-grade corporate bonds issued in the European market. Economists and investors use this indicator to assess credit market stress, corporate borrowing costs, and overall economic sentiment.

Methodology

The yield is calculated by Bank of America using a market-value weighted methodology that considers the effective yield of eligible high-yield euro-denominated corporate bonds.

Historical Context

Financial analysts and policymakers use this index to evaluate credit market conditions, assess corporate financial health, and gauge potential economic risks in the European corporate sector.

Key Facts

  • Measures yields for below-investment-grade euro corporate bonds
  • Provides insight into corporate borrowing costs and market risk
  • Reflects broader economic conditions in European financial markets

FAQs

Q: What does a high effective yield indicate?

A: A high effective yield typically suggests higher perceived risk in the corporate bond market, with investors demanding greater returns to compensate for potential default risk.

Q: How often is this index updated?

A: The ICE BofA Euro High Yield Index is typically updated daily, reflecting real-time changes in the European corporate bond market.

Q: Why are high-yield bonds important?

A: High-yield bonds provide crucial financing for companies with lower credit ratings and offer investors potentially higher returns compared to investment-grade securities.

Q: How do economic conditions impact this index?

A: Economic factors like interest rates, corporate performance, and market sentiment directly influence the effective yield of high-yield corporate bonds.

Q: What are the limitations of this index?

A: The index focuses specifically on euro-denominated bonds and may not fully represent global corporate bond market conditions or individual company performance.

Related Trends

Citation

U.S. Federal Reserve, ICE BofA Euro High Yield Index Effective Yield [BAMLHE00EHYIEY], retrieved from FRED.

Last Checked: 8/1/2025