40.5-Year High Quality Market (HQM) Corporate Bond Spot Rate
This dataset tracks 40.5-year high quality market (hqm) corporate bond spot rate over time.
Latest Value
6.15
Year-over-Year Change
9.82%
Date Range
1/1/1984 - 7/1/2025
Summary
The 40.5-Year High Quality Market Corporate Bond Spot Rate provides a critical benchmark for long-term corporate bond yields across high-quality credit markets. This metric helps investors and economists assess the cost of corporate borrowing and overall market expectations for long-term interest rates.
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 represents the theoretical yield for a zero-coupon corporate bond with a 40.5-year maturity, calculated using high-quality market corporate bonds. Economists and financial analysts use this rate to understand long-term credit market conditions and investor sentiment about future economic performance.
Methodology
The rate is calculated by the Federal Reserve using a comprehensive analysis of high-quality corporate bond market data, applying advanced yield curve estimation techniques.
Historical Context
This indicator is crucial for pension fund managers, corporate financial planners, and monetary policy researchers in evaluating long-term investment strategies and economic forecasting.
Key Facts
- Represents a 40.5-year theoretical zero-coupon corporate bond yield
- Provides insight into long-term corporate borrowing costs
- Calculated using high-quality market corporate bonds
FAQs
Q: What makes this a 'high-quality' market rate?
A: The rate is derived from corporate bonds with high credit ratings, typically from financially stable companies with strong credit profiles.
Q: How often is this rate updated?
A: The Federal Reserve typically updates this rate periodically, reflecting current market conditions and bond market dynamics.
Q: Why is a 40.5-year spot rate significant?
A: This extended time horizon provides a unique perspective on very long-term market expectations and borrowing costs beyond standard bond maturities.
Q: How do investors use this rate?
A: Investors use this rate to assess long-term investment strategies, compare corporate borrowing costs, and gauge overall market sentiment.
Q: What are the limitations of this rate?
A: The rate represents a theoretical construct and may not perfectly reflect actual bond market conditions at any specific moment.
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Citation
U.S. Federal Reserve, 40.5-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB40Y6M], retrieved from FRED.
Last Checked: 8/1/2025