7-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB7YR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.80
Year-over-Year Change
-1.84%
Date Range
1/1/1984 - 7/1/2025
Summary
The 7-Year High Quality Market (HQM) Corporate Bond Spot Rate tracks the yield of high-quality corporate bonds with a 7-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 debt pricing across different credit qualities and maturities. 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 and adjusts for market variations.
Historical Context
This rate is crucial for monetary policy analysis, corporate investment decisions, and understanding broader credit market dynamics.
Key Facts
- Represents yields for high-quality 7-year corporate bonds
- Used as a 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 financially stable companies with strong credit ratings, typically from AAA to BBB grade.
Q: How often is the HQM Corporate Bond Spot Rate updated?
A: The rate is typically updated daily by the Federal Reserve to reflect current market conditions and bond yields.
Q: Why do investors care about the 7-year corporate bond rate?
A: The 7-year rate provides insights into medium-term corporate borrowing costs and can indicate broader economic expectations about interest rates and corporate performance.
Q: How does this rate impact corporate financing?
A: Lower rates make borrowing cheaper for corporations, potentially stimulating investment and economic growth, while higher rates can indicate increased borrowing costs and economic caution.
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 all market nuances or individual company credit risks.
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Citation
U.S. Federal Reserve, 7-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB7YR], retrieved from FRED.
Last Checked: 8/1/2025