16-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB16YR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
5.74
Year-over-Year Change
5.32%
Date Range
1/1/1984 - 7/1/2025
Summary
The 16-Year High Quality Market (HQM) Corporate Bond Spot Rate represents the theoretical yield for high-quality corporate bonds with a 16-year maturity. This metric provides critical insights 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 high-quality corporate bonds with specific maturity characteristics. Economists and financial analysts use this rate to assess corporate credit markets, investment opportunities, and broader economic trends.
Methodology
The rate is calculated by the Federal Reserve using a complex methodology that considers multiple high-quality corporate bond yields and adjusts for market conditions and credit quality.
Historical Context
This rate is crucial for evaluating corporate financing costs, investment strategies, and macroeconomic policy assessments related to long-term corporate debt markets.
Key Facts
- Represents theoretical yield for 16-year high-quality corporate bonds
- Used by investors and economists to assess corporate credit markets
- Reflects long-term borrowing costs and market expectations
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, indicating lower default risk.
Q: How does the 16-year spot rate differ from other bond rates?
A: The 16-year spot rate specifically focuses on long-term corporate bonds, providing insights into extended corporate borrowing costs compared to shorter-term rates.
Q: How often is the HQMCB16YR rate updated?
A: The rate is typically updated regularly by the Federal Reserve, reflecting current market conditions and corporate bond market dynamics.
Q: Why do investors care about this rate?
A: Investors use this rate to assess potential returns, evaluate corporate bond investments, and understand long-term market expectations for corporate debt.
Q: What are the limitations of this rate?
A: The rate represents a theoretical yield and may not perfectly reflect actual market transactions, and it is specific to high-quality corporate bonds.
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Citation
U.S. Federal Reserve, 16-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB16YR], retrieved from FRED.
Last Checked: 8/1/2025