3.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB3Y6M • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.35
Year-over-Year Change
-8.42%
Date Range
1/1/1984 - 7/1/2025
Summary
The 3.5-Year High Quality Market (HQM) Corporate Bond Spot Rate tracks the yield of high-quality corporate bonds with a specific maturity timeframe. 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 benchmark for corporate bond yields, reflecting the current cost of debt for high-quality corporate issuers. Economists and financial analysts use this rate to assess corporate credit markets, investment attractiveness, and potential economic trends.
Methodology
The rate is calculated by the Federal Reserve using a comprehensive methodology that considers multiple high-quality corporate bond yields across different maturities and credit ratings.
Historical Context
This rate is utilized by policymakers, investors, and financial institutions to evaluate credit market conditions, assess corporate financial health, and inform investment and lending strategies.
Key Facts
- Measures yields for high-quality corporate bonds at the 3.5-year maturity point
- Provides a standardized view of corporate borrowing costs
- Reflects broader economic and credit 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: The HQM Corporate Bond Spot Rate directly influences the interest rates companies must pay when issuing new debt, reflecting current market credit conditions.
Q: How frequently is this rate updated?
A: The Federal Reserve typically updates this rate regularly, with most data points refreshed on a monthly or quarterly basis.
Q: Why do investors care about this rate?
A: Investors use this rate to compare potential returns, assess corporate credit market health, and make informed investment decisions across different fixed-income securities.
Q: What are the limitations of this rate?
A: The rate represents a specific segment of the corporate bond market and may not fully capture the complexity of all corporate debt or smaller, less-rated issuers.
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85.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB85Y6M
25-Year High Quality Market (HQM) Corporate Bond Spot Rate
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Citation
U.S. Federal Reserve, 3.5-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB3Y6M], retrieved from FRED.
Last Checked: 8/1/2025