3-Year High Quality Market (HQM) Corporate Bond Spot Rate
This dataset tracks 3-year high quality market (hqm) corporate bond spot rate over time.
Latest Value
4.32
Year-over-Year Change
-9.62%
Date Range
1/1/1984 - 7/1/2025
Summary
The 3-Year High Quality Market (HQM) Corporate Bond Spot Rate tracks the yield of high-quality corporate bonds with a three-year maturity. This metric provides critical insight 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 top-rated companies. Economists and investors use this rate to assess credit market health and potential economic trends.
Methodology
The rate is calculated by the Federal Reserve using a comprehensive methodology that considers high-quality corporate bond yields across multiple market segments.
Historical Context
This rate is crucial for monetary policy analysis, corporate financial planning, and understanding broader credit market dynamics.
Key Facts
- Represents yields for high-quality 3-year corporate bonds
- Used as a critical benchmark for 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 companies with strong credit ratings, typically AAA or AA, indicating low default risk and financial stability.
Q: How does this rate impact corporate borrowing?
A: The HQM rate directly influences the interest rates companies must pay when issuing new bonds, affecting their cost of capital and financial strategy.
Q: How often is this rate updated?
A: The Federal Reserve typically updates this rate regularly, reflecting current market conditions and changes in corporate bond yields.
Q: Why do investors care about this rate?
A: Investors use this rate to assess corporate bond attractiveness, compare investment opportunities, and gauge overall market credit conditions.
Q: What economic signals does this rate provide?
A: Changes in the HQM rate can indicate shifts in market sentiment, economic expectations, and potential monetary policy adjustments.
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Citation
U.S. Federal Reserve, 3-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB3YR], retrieved from FRED.
Last Checked: 8/1/2025