85-Year High Quality Market (HQM) Corporate Bond Spot Rate

HQMCB85YR • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

6.32

Year-over-Year Change

11.46%

Date Range

1/1/1984 - 7/1/2025

Summary

The 85-Year High Quality Market Corporate Bond Spot Rate provides a long-term perspective on corporate bond yields across high-quality credit instruments. This metric offers critical insights into long-term corporate borrowing costs and broader economic expectations.

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 an 85-year corporate bond with high credit quality, reflecting sophisticated market expectations about long-term interest rates and corporate credit conditions. Economists and financial analysts use this rate to understand deep structural trends in corporate financing and long-term economic outlook.

Methodology

The rate is calculated using a complex yield curve methodology that interpolates corporate bond prices and yields across multiple credit quality tiers and extended time horizons.

Historical Context

Policymakers and institutional investors use this rate to assess long-term economic stability, corporate credit risk, and potential investment strategies.

Key Facts

  • Represents theoretical yield for high-quality 85-year corporate bonds
  • Provides insight into long-term economic expectations
  • Used by sophisticated financial analysts and institutional investors

FAQs

Q: What makes this 85-year spot rate unique?

A: The extremely long 85-year horizon provides an unprecedented view of potential long-term economic and credit market conditions beyond typical bond maturities.

Q: How do changes in this rate impact corporate financing?

A: Significant shifts can indicate changing perceptions of corporate credit risk and long-term economic stability, potentially affecting borrowing costs and investment strategies.

Q: Who primarily uses this economic indicator?

A: Institutional investors, central bank economists, corporate financial strategists, and advanced market researchers rely on this metric for comprehensive economic analysis.

Q: How frequently is this rate updated?

A: The rate is typically updated periodically by the Federal Reserve, reflecting current market conditions and evolving economic expectations.

Q: What are potential limitations of this indicator?

A: The extremely long-term nature means it represents theoretical projections and may not precisely predict short-term market movements.

Related Trends

Citation

U.S. Federal Reserve, 85-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB85YR], retrieved from FRED.

Last Checked: 8/1/2025