56) Over the Past Three Months, How Have the Terms Under Which High-Yield Corporate Bonds Are Funded Changed?| B. Terms for Most Favored Clients, as a Consequence of Breadth, Duration And/or Extent of Relationship | 4. Collateral Spreads Over Relevant Benchmark (Effective Financing Rates). | Answer Type: Eased Somewhat
SFQ56B4ESNR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.00
Year-over-Year Change
0.00%
Date Range
10/1/2011 - 4/1/2025
Summary
This economic indicator tracks changes in the funding terms for high-yield corporate bonds for the most favored clients. It provides insight into the credit market's flexibility and lending conditions for top-tier 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 measures the collateral spreads over relevant benchmark effective financing rates for high-yield bonds. Economists use this metric to understand credit market dynamics and potential shifts in corporate borrowing conditions.
Methodology
Data is collected through systematic surveying of financial institutions and corporate lending practices by the Federal Reserve.
Historical Context
This indicator helps policymakers and investors assess the current state of corporate credit markets and potential economic stress or liquidity.
Key Facts
- Reflects funding terms for most favored corporate clients
- Indicates potential changes in credit market conditions
- Provides insight into corporate borrowing flexibility
FAQs
Q: What does 'Eased Somewhat' mean in this context?
A: It suggests that the terms for high-yield corporate bonds have become slightly more favorable for top-tier borrowers, indicating a modest improvement in lending conditions.
Q: Why are collateral spreads important?
A: Collateral spreads help measure the risk premium and lending conditions in corporate bond markets, reflecting overall economic and financial market health.
Q: How often is this data updated?
A: The Federal Reserve typically updates this indicator quarterly, providing a periodic snapshot of corporate bond funding terms.
Q: How do investors use this information?
A: Investors analyze these trends to understand credit market conditions, assess potential investment risks, and make informed decisions about corporate bonds.
Q: What limitations exist in this data?
A: The indicator focuses on most favored clients, which may not fully represent the entire corporate bond market or smaller borrowers.
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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?| B. Terms for Most Favored Clients, as a Consequence of Breadth, Duration And/or Extent of Relationship | 4. Collateral Spreads Over Relevant Benchmark (Effective Financing Rates). | Answer Type: Eased Somewhat [SFQ56B4ESNR], retrieved from FRED.
Last Checked: 8/1/2025