40-Year High Quality Market (HQM) Corporate Bond Spot Rate
This dataset tracks 40-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-Year High Quality Market Corporate Bond Spot Rate represents the theoretical yield for high-quality corporate bonds with a 40-year maturity. This metric provides critical insights into long-term corporate borrowing costs and investor expectations for corporate debt.
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 long-term, high-quality corporate bonds across various economic conditions. Economists and financial analysts use this rate to assess corporate credit markets, investment opportunities, and broader economic trends.
Methodology
The rate is calculated by the Federal Reserve using a comprehensive methodology that considers high-quality corporate bond market data and yield curves.
Historical Context
Policymakers and investors use this rate to evaluate long-term corporate credit conditions, assess investment risks, and make strategic financial decisions.
Key Facts
- Represents theoretical 40-year corporate bond yields
- Indicates long-term borrowing cost trends
- Used by investors and economic analysts for strategic planning
FAQs
Q: What does the 40-Year HQM Corporate Bond Spot Rate indicate?
A: It shows the theoretical yield for high-quality 40-year corporate bonds, reflecting long-term borrowing costs and market expectations.
Q: How often is this rate updated?
A: The rate is typically updated regularly by the Federal Reserve to reflect current market conditions and corporate bond pricing.
Q: Why is the 40-year spot rate important?
A: It provides insights into long-term corporate credit markets, helping investors and analysts assess economic trends and investment opportunities.
Q: How do changes in this rate impact corporate financing?
A: Fluctuations can influence corporate borrowing costs, investment strategies, and overall corporate financial planning.
Q: What limitations exist in interpreting this rate?
A: The rate represents a theoretical yield and may not perfectly reflect actual bond market transactions or specific corporate credit risks.
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Citation
U.S. Federal Reserve, 40-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB40YR], retrieved from FRED.
Last Checked: 8/1/2025