55) Over the Past Three Months, How Have Liquidity and Functioning in the High-Grade Corporate Bond Market Changed?| Answer Type: Deteriorated Somewhat

SFQ55EONR • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.00

Year-over-Year Change

-100.00%

Date Range

10/1/2011 - 4/1/2025

Summary

This economic indicator tracks changes in liquidity and market functioning for high-grade corporate bonds over a three-month period. The metric provides insights into the health and stress levels of corporate debt markets, which are critical for understanding broader economic 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 trend measures the perceived ease of trading and market conditions for high-quality corporate bonds, reflecting investor sentiment and potential financial market stress. Economists use this indicator to assess corporate credit market dynamics and potential systemic risks.

Methodology

Data is collected through surveys and market observations of corporate bond trading volumes, bid-ask spreads, and market participant perceptions.

Historical Context

Policymakers and financial analysts use this trend to gauge potential economic pressures and make informed decisions about monetary policy and financial market interventions.

Key Facts

  • Tracks liquidity in high-grade corporate bond markets
  • Provides quarterly assessment of market conditions
  • Indicates potential financial market stress or stability

FAQs

Q: What does 'deteriorated somewhat' mean in this context?

A: It suggests a moderate decline in the ease of trading high-grade corporate bonds, indicating potential increased market friction or reduced market efficiency.

Q: Why are high-grade corporate bonds important?

A: High-grade corporate bonds represent debt from financially stable companies and are considered relatively low-risk investments that reflect broader economic health.

Q: How is this data series calculated?

A: The series is derived from surveys and market data analyzing trading volumes, transaction costs, and market participant perceptions of bond market conditions.

Q: How do policymakers use this information?

A: Federal Reserve officials and economic policymakers use this trend to assess potential financial market stress and inform monetary policy decisions.

Q: How frequently is this data updated?

A: The indicator is typically updated quarterly, providing a periodic snapshot of corporate bond market conditions.

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Citation

U.S. Federal Reserve, 55) Over the Past Three Months, How Have Liquidity and Functioning in the High-Grade Corporate Bond Market Changed?| Answer Type: Deteriorated Somewhat [SFQ55EONR], retrieved from FRED.

Last Checked: 8/1/2025