25-Year High Quality Market (HQM) Corporate Bond Spot Rate
This dataset tracks 25-year high quality market (hqm) corporate bond spot rate over time.
Latest Value
5.99
Year-over-Year Change
8.12%
Date Range
1/1/1984 - 7/1/2025
Summary
The 25-Year High Quality Market Corporate Bond Spot Rate represents the theoretical yield for high-quality corporate bonds with a 25-year maturity. This metric provides critical insight into long-term corporate borrowing costs and investor expectations about future economic 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 spot rate reflects the current market pricing for high-quality corporate debt across a 25-year time horizon, serving as a key benchmark for corporate finance and investment analysis. Economists and financial professionals use this rate to assess corporate borrowing costs, evaluate investment opportunities, and understand broader market sentiment.
Methodology
The rate is calculated by the Federal Reserve using a sophisticated yield curve model that interpolates bond prices and yields from high-quality corporate debt instruments.
Historical Context
This trend is crucial for monetary policy analysis, corporate financial planning, and understanding long-term investment risk and return expectations.
Key Facts
- Represents theoretical yield for high-quality 25-year corporate bonds
- Provides insight into long-term corporate borrowing costs
- Used by investors and economists to assess market conditions
FAQs
Q: What makes a corporate bond 'high quality'?
A: High-quality corporate bonds are issued by financially stable companies with strong credit ratings, typically from AAA to BBB grade, indicating lower default risk.
Q: How does this rate impact corporate borrowing?
A: Higher spot rates increase borrowing costs for corporations, while lower rates make long-term debt financing more affordable and attractive.
Q: How often is this rate updated?
A: The Federal Reserve updates this rate regularly, typically daily, reflecting current market conditions and investor sentiment.
Q: Why is a 25-year spot rate significant?
A: The 25-year timeframe provides a long-term view of corporate borrowing costs and market expectations about future economic conditions.
Q: Can individual investors use this rate?
A: While primarily used by institutional investors, this rate can help individual investors understand broader market trends and potential investment opportunities.
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Citation
U.S. Federal Reserve, 25-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB25YR], retrieved from FRED.
Last Checked: 8/1/2025