Moody's Seasoned Aaa Corporate Bond Yield Market Daily Analysis: H.15 Selected Interest Rates (2024)

FAQs

What is Moody's seasoned AAA corporate bond yield AAA? ›

Moody's Seasoned Aaa Corporate Bond Yield is at 5.04%, compared to 5.05% the previous market day and 4.63% last year. This is lower than the long term average of 6.45%. The Moody's Seasoned Aaa Corporate Bond Yield measures the yield on corporate bonds that are rated Aaa.

US Corporate AAA Effective Yield is at 4.91%, compared to 4.84% the previous market day and 4.63% last year.

Bond ratings summarize the risk of default for an individual bond. The safest bonds—AAA, AA, A, and BBB—have a one-year probability of default that is less than 0.1 percent. 4 Speculative-grade bonds—BB, B, and CCC—are considerably riskier.

The most reliable (least risky) bonds are rated triple-A (AAA). Highly-rated corporate bonds constitute a reliable source of income for a portfolio. They can help you accumulate money for retirement or save for college or emergency expenses.

Obligations rated Aaa are judged to be of the highest quality, with minimal risk. Obligations rated Aa are judged to be of high quality and are subject to. very low credit risk.

AAA-rated bonds have a high degree of creditworthiness because their issuers are easily able to meet financial commitments and have the lowest risk of default.

Either way, bond ratings are scaled differently depending on the rating agency, and it's important to know the similarities and differences across rating firms. For Standard & Poor's, AAA is the best rating, followed by AA, A, BBB, BB, B, CCC, CC, and C.

For Fitch Ratings, a triple-A or AAA rating is the highest investment grade and signifies that its debt is an exceptionally low credit risk. A rating of AA+ represents very high credit quality; An "A" means high credit quality, and BBB is a satisfactory credit quality.

What is the current I bond rate? The current composite I bond rate is 4.28%. This includes a 1.30% fixed rate and a 1.48% inflation rate. The current rate applies for six months to bonds purchased between May 1, 2024, and Oct.

Investment grade and high yield bonds

Investors typically group bond ratings into 2 major categories: Investment-grade refers to bonds rated Baa3/BBB- or better. High-yield (also referred to as "non-investment-grade" or "junk" bonds) pertains to bonds rated Ba1/BB+ and lower.

Why is a junk bond coupon rate higher than a AAA rated bond? ›

Junk bonds are debt securities rated poorly by credit agencies, making them higher risk (and higher yielding) than investment grade debt. Angel Bond, opposite of 'fallen angels', is slang for an investment-grade bond with a high enough credit rating that banks can legally invest in them.

What are AAA rated bonds? AAA rated bonds are the highest-rated investment-grade bonds. Indian credit-rating agencies like CRISIL, ICRA, CARE, and India Ratings provide these ratings after assessing the financial and operational health of the bond issuer and the risk of the individual bond.

US Corporate BBB Effective Yield is at 5.63%, compared to 5.55% the previous market day and 5.80% last year. This is higher than the long term average of 5.27%.

High-yield bonds, or junk bonds, are corporate debt securities that pay higher interest rates than investment-grade bonds. High-yield bonds tend to have lower credit ratings of below BBB- from Standard & Poor's and Fitch, or below Baa3 from Moody's.

The highest possible rating that a bond may achieve is AAA, which is only bestowed upon those bonds that exhibit the highest levels of creditworthiness. This AAA rating is used by Fitch Ratings and Standard & Poor's, while Moody's uses a similar Aaa lettering.

For bonds, a seasoned issue is one that has been traded for longer than a year and has not experienced any repayment issues.

Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.