56) Over the Past Three Months, How Have the Terms Under Which High-Yield Corporate Bonds Are Funded Changed?| A. Terms for Average Clients | 3. Haircuts. | Answer Type: Eased Somewhat

SFQ56A3ESNR • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

1.00

Year-over-Year Change

N/A%

Date Range

10/1/2011 - 4/1/2025

Summary

Tracks haircut changes for average clients in high-yield corporate bond markets. Provides insights into lending flexibility and credit market 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

This metric measures variations in bond lending terms for typical corporate clients. It reflects broader credit market accessibility and risk assessment.

Methodology

Collected through periodic senior loan officer surveys on corporate lending practices.

Historical Context

Used by economists to understand credit market dynamics and lending trends.

Key Facts

  • Indicates easing of lending terms
  • Represents average client categories
  • Measures bond lending flexibility

FAQs

Q: What are bond haircuts?

A: Haircuts represent the difference between a bond's market value and its lending value. Lower haircuts indicate more favorable lending terms.

Q: Why do haircuts change?

A: Market volatility, economic conditions, and institutional risk assessments drive haircut variations.

Q: How often are haircuts adjusted?

A: Haircuts can change quarterly based on market conditions and lending surveys.

Q: What do easing haircuts mean?

A: Easing haircuts suggest increased lending flexibility and potentially lower perceived market risks.

Q: How do haircuts impact borrowers?

A: Lower haircuts can mean easier access to credit and potentially lower borrowing costs.

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Citation

U.S. Federal Reserve, Corporate Bond Haircuts (SFQ56A3ESNR), retrieved from FRED.