4-Year High Quality Market (HQM) Corporate Bond Spot Rate
This dataset tracks 4-year high quality market (hqm) corporate bond spot rate over time.
Latest Value
4.39
Year-over-Year Change
-7.38%
Date Range
1/1/1984 - 7/1/2025
Summary
The 4-Year High Quality Market (HQM) Corporate Bond Spot Rate tracks the yield of high-quality corporate bonds with a 4-year maturity. 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 debt pricing, reflecting the current market interest rates for investment-grade corporate bonds. Economists and financial analysts use this rate to assess corporate credit markets 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 evaluating corporate financing costs, investment attractiveness, and potential economic growth indicators.
Key Facts
- Represents 4-year corporate bond yields for high-quality issuers
- Provides insight into corporate borrowing costs
- Updated regularly to reflect current market conditions
FAQs
Q: What makes a corporate bond 'high quality'?
A: High-quality corporate bonds are typically issued by financially stable companies with strong credit ratings, usually investment-grade (BBB- or higher).
Q: How do changes in this rate impact businesses?
A: Fluctuations in the rate directly influence corporate borrowing costs, affecting companies' ability to finance expansion, refinance debt, and make strategic investments.
Q: How is this rate different from Treasury bond rates?
A: Unlike Treasury rates, this rate includes a credit risk premium reflecting the higher risk associated with corporate versus government debt.
Q: Why do investors track this rate?
A: Investors use this rate to assess corporate bond attractiveness, compare investment opportunities, and gauge overall market credit conditions.
Q: How frequently is this data updated?
A: The Federal Reserve typically updates this rate monthly, providing current insights into corporate bond market trends.
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Citation
U.S. Federal Reserve, 4-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB4YR], retrieved from FRED.
Last Checked: 8/1/2025