42-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB42YR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
6.16
Year-over-Year Change
10.00%
Date Range
1/1/1984 - 7/1/2025
Summary
The 42-Year High Quality Market Corporate Bond Spot Rate represents the yield for high-quality corporate bonds with a 42-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
This spot rate reflects the theoretical yield of corporate bonds at a specific 42-year maturity point, constructed using a sophisticated yield curve methodology. Economists and financial analysts use this rate to assess long-term corporate credit conditions and compare against other fixed-income benchmarks.
Methodology
The rate is calculated by the Federal Reserve using a complex interpolation method that considers multiple high-quality corporate bond yields across different maturities.
Historical Context
This trend is used by policymakers, investors, and financial strategists to evaluate long-term corporate credit markets, investment strategies, and potential economic trends.
Key Facts
- Represents theoretical yield for high-quality 42-year corporate bonds
- Provides insight into long-term corporate borrowing costs
- Calculated using advanced yield curve interpolation techniques
FAQs
Q: What does the 42-Year HQM Corporate Bond Spot Rate indicate?
A: It shows the theoretical yield for high-quality corporate bonds with a 42-year maturity, reflecting long-term borrowing costs and market expectations.
Q: How is this rate different from other bond yield measurements?
A: Unlike standard bond indices, this rate specifically focuses on a 42-year maturity point and uses a sophisticated interpolation methodology.
Q: Who uses this specific bond rate?
A: Institutional investors, financial analysts, corporate treasurers, and economic policymakers use this rate to assess long-term credit market conditions.
Q: How often is this rate updated?
A: The Federal Reserve typically updates this rate periodically, reflecting current market conditions and corporate bond market dynamics.
Q: What limitations exist in interpreting this rate?
A: The rate represents a theoretical construct and may not perfectly reflect actual bond market transactions, requiring careful contextual interpretation.
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Citation
U.S. Federal Reserve, 42-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB42YR], retrieved from FRED.
Last Checked: 8/1/2025