5-Year High Quality Market (HQM) Corporate Bond Spot Rate
HQMCB5YR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.51
Year-over-Year Change
-5.05%
Date Range
1/1/1984 - 7/1/2025
Summary
The 5-Year High Quality Market (HQM) Corporate Bond Spot Rate tracks the yield of high-quality corporate bonds with a 5-year maturity. This metric provides critical insight into corporate borrowing costs and overall credit market conditions.
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 represents a benchmark for corporate bond yields, reflecting the current cost of debt for top-rated companies. Economists and investors 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 high-quality corporate bond yields across multiple market segments.
Historical Context
This rate is crucial for monetary policy analysis, corporate financial planning, and understanding broader economic investment conditions.
Key Facts
- Represents 5-year corporate bond yields for high-quality issuers
- Serves as a critical benchmark for corporate borrowing costs
- Reflects broader economic and credit market conditions
FAQs
Q: What makes a corporate bond 'high quality'?
A: High-quality corporate bonds are issued by companies with strong credit ratings, typically AAA or AA, indicating low default risk and financial stability.
Q: How do changes in this rate impact investors?
A: Fluctuations in the HQM Corporate Bond Spot Rate can signal shifts in corporate borrowing costs, affecting bond valuations and investment returns.
Q: How frequently is this rate updated?
A: The Federal Reserve typically updates this rate regularly, reflecting current market conditions and corporate credit dynamics.
Q: Why do economists track this rate?
A: This rate provides insights into corporate financial health, credit market conditions, and potential economic trends or pressures.
Q: What are the limitations of this rate?
A: The rate represents a specific segment of corporate bonds and may not capture the full complexity of broader credit markets or individual company risks.
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Citation
U.S. Federal Reserve, 5-Year High Quality Market (HQM) Corporate Bond Spot Rate [HQMCB5YR], retrieved from FRED.
Last Checked: 8/1/2025