56) Over the Past Three Months, How Have the Terms Under Which High-Yield Corporate Bonds Are Funded Changed?| A. Terms for Average Clients | 4. Collateral Spreads Over Relevant Benchmark (Effective Financing Rates). | Answer Type: Tightened Somewhat
SFQ56A4TSNR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.00
Year-over-Year Change
-66.67%
Date Range
10/1/2011 - 4/1/2025
Summary
This economic indicator tracks changes in collateral spreads for high-yield corporate bonds over a three-month period. The metric provides insight into lending conditions and financial market stress by measuring how financing terms are evolving for corporate borrowers.
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 trend represents the tightening or loosening of collateral requirements for high-yield (or 'junk') corporate bonds relative to benchmark financing rates. Economists use this metric to assess credit market conditions and potential shifts in corporate borrowing accessibility.
Methodology
Data is collected through systematic surveying of financial institutions and bond market transactions, tracking changes in collateral spread requirements.
Historical Context
This indicator is crucial for central banks and policymakers in understanding credit market dynamics and potential economic pressures.
Key Facts
- Indicates tightening of corporate bond financing terms
- Reflects potential changes in credit market risk perception
- Provides insight into corporate borrowing conditions
FAQs
Q: What do collateral spreads indicate?
A: Collateral spreads measure the additional risk premium required by lenders when financing high-yield corporate bonds. They reflect the perceived creditworthiness of borrowers.
Q: Why are high-yield bond terms important?
A: Changes in bond terms can signal broader economic trends, including credit market health and potential investment risks. They impact corporate financing strategies.
Q: How often is this data updated?
A: Typically, this type of economic indicator is updated quarterly, providing a snapshot of recent market conditions and lending trends.
Q: What does 'tightened somewhat' mean?
A: It suggests that lenders have slightly increased their risk requirements or collateral demands for high-yield corporate bonds compared to previous periods.
Q: How do economists use this data?
A: Economists analyze these trends to understand credit market dynamics, assess economic health, and predict potential shifts in corporate investment and borrowing.
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Citation
U.S. Federal Reserve, 56) Over the Past Three Months, How Have the Terms Under Which High-Yield Corporate Bonds Are Funded Changed?| A. Terms for Average Clients | 4. Collateral Spreads Over Relevant Benchmark (Effective Financing Rates). | Answer Type: Tightened Somewhat [SFQ56A4TSNR], retrieved from FRED.
Last Checked: 8/1/2025