20.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB20Y6M • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
5.93
Year-over-Year Change
7.04%
Date Range
1/1/1984 - 7/1/2025
Summary
The 20.5-Year High Quality Market (HQM) Corporate Bond Spot Rate tracks the yield of high-quality corporate bonds with a specific maturity duration. This metric provides critical insights into corporate borrowing costs and overall market credit 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
The HQM Corporate Bond Spot Rate represents a sophisticated measure of corporate bond yields that reflects the current market's assessment of credit risk and long-term investment potential. Economists and financial analysts use this rate to understand corporate financing dynamics and broader economic trends.
Methodology
The rate is calculated by the Federal Reserve using a comprehensive methodology that considers high-quality corporate bond yields across different maturities and credit ratings.
Historical Context
This trend is crucial for assessing corporate financing costs, investment strategies, and potential macroeconomic signals about economic health and credit market conditions.
Key Facts
- Represents yields for high-quality corporate bonds with a 20.5-year duration
- Provides insights into long-term corporate borrowing costs
- Used by investors and policymakers to assess market credit conditions
FAQs
Q: What does the HQM Corporate Bond Spot Rate indicate?
A: The rate indicates the current yield for high-quality corporate bonds, reflecting market expectations about credit risk and long-term investment returns.
Q: How often is this rate updated?
A: The Federal Reserve typically updates this rate regularly, with precise frequency depending on market conditions and data collection cycles.
Q: Why do investors care about this rate?
A: Investors use this rate to assess corporate bond attractiveness, compare investment opportunities, and understand broader market credit conditions.
Q: How does this rate relate to economic policy?
A: Policymakers and central banks monitor this rate as an indicator of corporate financial health and potential economic trends.
Q: What limitations exist in interpreting this rate?
A: The rate represents a specific market segment and should be considered alongside other economic indicators for comprehensive analysis.
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Citation
U.S. Federal Reserve, 20.5-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB20Y6M], retrieved from FRED.
Last Checked: 8/1/2025