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

HQMCB12YR • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

5.44

Year-over-Year Change

3.23%

Date Range

1/1/1984 - 7/1/2025

Summary

The 12-Year High Quality Market Corporate Bond Spot Rate represents the theoretical yield for high-quality corporate bonds with a 12-year maturity. This metric provides critical insight into long-term corporate borrowing costs and investor expectations for corporate debt markets.

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 is a sophisticated financial indicator that tracks the yield curve for investment-grade corporate bonds with specific maturity characteristics. 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 characteristics and market conditions.

Historical Context

This rate is crucial for monetary policy analysis, corporate financial planning, and understanding long-term investment strategies in fixed-income markets.

Key Facts

  • Represents theoretical yield for 12-year high-quality corporate bonds
  • Used by investors and policymakers to assess corporate credit markets
  • Reflects broader economic expectations and investment 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 does this rate impact corporate borrowing?

A: The rate directly influences the cost of long-term corporate debt, with higher rates indicating more expensive borrowing for companies.

Q: How frequently is the HQMCB12YR rate updated?

A: The rate is typically updated regularly by the Federal Reserve, reflecting current market conditions and economic indicators.

Q: Why do investors track this specific 12-year spot rate?

A: The 12-year rate provides insight into medium to long-term economic expectations and corporate financial health.

Q: Are there limitations to using this rate?

A: While valuable, the rate represents a theoretical yield and should be considered alongside other economic indicators for comprehensive analysis.

Related Trends

Citation

U.S. Federal Reserve, 12-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB12YR], retrieved from FRED.

Last Checked: 8/1/2025