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Report to the Congress on the Availability of Credit to Small Businesses

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Submitted to the Congress pursuant to section 2227 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996
October 2007

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Figure 3
Corporate Credit Conditions, 1990-2007

Default and Delinquency Rates
Percent

Quarter	C&I loan delinquency rate1	Bond default rate2
1990:Q1	4.96
1990:Q2	5.15
1990:Q3	5.24	1.71
1990:Q4	6.04	1.91
1991:Q1	6.06	3.07
1991:Q2	6.18	2.90
1991:Q3	5.99	1.52
1991:Q4	5.79	0.86
1992:Q1	5.52	1.13
1992:Q2	5.27	1.01
1992:Q3	5.03	0.41
1992:Q4	4.55	0.34
1993:Q1	4.21	0.24
1993:Q2	3.82	0.33
1993:Q3	3.41	0.29
1993:Q4	2.88	0.10
1994:Q1	2.61	0.21
1994:Q2	2.25	0.29
1994:Q3	2.07	0.20
1994:Q4	2.04	0.13
1995:Q1	1.97	0.26
1995:Q2	1.96	0.48
1995:Q3	1.93	0.49
1995:Q4	1.93	0.53
1996:Q1	1.91	0.46
1996:Q2	1.91	0.26
1996:Q3	1.88	0.21
1996:Q4	1.81	0.29
1997:Q1	1.76	0.45
1997:Q2	1.69	0.47
1997:Q3	1.61	0.33
1997:Q4	1.59	0.19
1998:Q1	1.68	0.22
1998:Q2	1.61	0.33
1998:Q3	1.66	0.28
1998:Q4	1.76	0.36
1999:Q1	1.85	0.65
1999:Q2	1.89	1.07
1999:Q3	1.97	1.18
1999:Q4	1.92	0.88
2000:Q1	2.02	0.82
2000:Q2	2.16	1.04
2000:Q3	2.26	0.96
2000:Q4	2.45	0.96
2001:Q1	2.65	1.94
2001:Q2	2.93	2.72
2001:Q3	3.25	2.21
2001:Q4	3.49	2.25
2002:Q1	3.69	3.21
2002:Q2	3.92	2.96
2002:Q3	3.88	3.66
2002:Q4	3.88	3.35
2003:Q1	3.65	1.89
2003:Q2	3.56	1.56
2003:Q3	3.27	1.12
2003:Q4	2.85	0.72
2004:Q1	2.57	0.35
2004:Q2	2.29	0.29
2004:Q3	2.03	0.19
2004:Q4	1.82	0.38
2005:Q1	1.63	0.61
2005:Q2	1.49	0.41
2005:Q3	1.47	0.35
2005:Q4	1.45	0.99
2006:Q1	1.39	1.02
2006:Q2	1.27	0.42
2006:Q3	1.26	0.12
2006:Q4	1.18	0.12
2007:Q1	1.18	0.13
2007:Q2	1.17	0.11

1. Quarterly rate, from the Call Report. Return to table

2. Six-month moving average, from Moody's Investors Service. Return to table

Yields on Corporate Bonds
Percent

Month	10-year BBB	10-year high yield
January 1990	10.18	14.02
February 1990	10.26	14.46
March 1990	10.39	14.12
April 1990	10.75	14.33
May 1990	10.25	11.99
June 1990	10.07	13.26
July 1990	10.02	12.37
August 1990	10.52	13.17
September 1990	10.45	13.89
October 1990	10.56	14.21
November 1990	10.42	13.72
December 1990	10.33	13.44
January 1991	10.30	13.34
February 1991	9.99	11.95
March 1991	9.94	11.46
April 1991	9.83	11.30
May 1991	9.77	11.04
June 1991	9.93	11.03
July 1991	9.77	10.71
August 1991	9.46	10.56
September 1991	9.22	10.19
October 1991	9.17	9.90
November 1991	9.10	10.68
December 1991	8.65	10.75
January 1992	8.92	10.93
February 1992	8.82	10.55
March 1992	9.01	11.08
April 1992	9.00	11.01
May 1992	8.71	11.04
June 1992	8.50	10.93
July 1992	8.11	10.60
August 1992	8.08	10.89
September 1992	7.94	10.76
October 1992	8.37	11.11
November 1992	8.50	11.00
December 1992	8.30	10.96
January 1993	7.96	10.61
February 1993	7.65	10.28
March 1993	7.60	10.15
April 1993	7.51	10.15
May 1993	7.55	9.91
June 1993	7.20	9.57
July 1993	7.16	9.51
August 1993	6.87	9.38
September 1993	6.88	9.38
October 1993	6.85	9.32
November 1993	7.09	9.54
December 1993	7.05	9.42
January 1994	6.80	9.18
February 1994	7.27	9.43
March 1994	7.92	10.20
April 1994	8.20	10.45
May 1994	8.36	10.62
June 1994	8.51	10.69
July 1994	8.18	10.62
August 1994	8.24	10.55
September 1994	8.69	10.73
October 1994	8.88	10.76
November 1994	9.10	11.10
December 1994	9.12	11.12
January 1995	8.85	11.00
February 1995	8.43	10.54
March 1995	8.41	10.55
April 1995	8.23	10.25
May 1995	7.51	9.77
June 1995	7.44	9.76
July 1995	7.61	9.69
August 1995	7.44	9.77
September 1995	7.34	9.61
October 1995	7.22	9.49
November 1995	6.98	9.39
December 1995	6.81	9.23
January 1996	6.75	9.06
February 1996	7.24	9.28
March 1996	7.49	9.46
April 1996	7.73	9.64
May 1996	7.89	9.83
June 1996	7.72	9.79
July 1996	7.79	9.83
August 1996	7.96	9.78
September 1996	7.69	9.44
October 1996	7.31	9.30
November 1996	7.03	9.05
December 1996	7.38	9.22
January 1997	7.43	9.12
February 1997	7.46	9.06
March 1997	7.85	9.37
April 1997	7.68	9.30
May 1997	7.59	9.10
June 1997	7.46	9.06
July 1997	6.97	8.76
August 1997	7.30	9.01
September 1997	7.10	8.85
October 1997	6.97	8.84
November 1997	7.02	8.78
December 1997	6.92	8.73
January 1998	6.57	8.91
February 1998	6.66	8.87
March 1998	6.74	8.88
April 1998	6.72	8.86
May 1998	6.73	9.02
June 1998	6.60	9.18
July 1998	6.61	9.26
August 1998	6.64	9.62
September 1998	6.62	10.33
October 1998	6.50	10.71
November 1998	6.86	10.36
December 1998	6.58	10.10
January 1999	6.64	10.13
February 1999	6.79	10.16
March 1999	6.96	10.24
April 1999	6.85	9.98
May 1999	7.17	10.23
June 1999	7.59	10.56
July 1999	7.52	10.56
August 1999	7.77	10.73
September 1999	7.84	10.86
October 1999	7.98	10.99
November 1999	7.83	10.90
December 1999	8.01	10.75
January 2000	8.29	11.02
February 2000	8.19	11.17
March 2000	8.13	11.55
April 2000	8.14	11.82
May 2000	8.76	12.05
June 2000	8.44	12.02
July 2000	8.27	12.02
August 2000	8.09	12.05
September 2000	8.08	11.86
October 2000	8.03	12.45
November 2000	8.01	12.99
December 2000	7.67	13.18
January 2001	7.55	12.36
February 2001	7.45	11.61
March 2001	7.31	11.63
April 2001	7.52	12.17
May 2001	7.55	11.85
June 2001	7.41	11.85
July 2001	7.42	11.89
August 2001	7.18	11.56
September 2001	7.15	11.91
October 2001	7.04	11.94
November 2001	7.12	11.08
December 2001	7.43	11.12
January 2002	7.43	10.93
February 2002	7.54	11.01
March 2002	7.79	10.62
April 2002	7.69	10.60
May 2002	7.73	10.54
June 2002	7.40	11.05
July 2002	7.51	11.42
August 2002	7.34	11.72
September 2002	6.98	11.47
October 2002	7.31	12.14
November 2002	7.05	11.39
December 2002	6.75	11.08
January 2003	6.63	10.44
February 2003	6.48	10.46
March 2003	6.30	10.14
April 2003	6.15	9.51
May 2003	5.55	9.03
June 2003	5.26	8.71
July 2003	5.78	8.78
August 2003	6.29	9.26
September 2003	6.01	8.73
October 2003	5.92	8.44
November 2003	5.86	8.28
December 2003	5.74	7.97
January 2004	5.55	7.66
February 2004	5.52	7.86
March 2004	5.31	7.84
April 2004	5.78	7.98
May 2004	6.23	8.51
June 2004	6.25	8.48
July 2004	5.99	8.23
August 2004	5.78	8.11
September 2004	5.55	7.85
October 2004	5.46	7.72
November 2004	5.46	7.46
December 2004	5.41	7.41
January 2005	5.38	7.47
February 2005	5.28	7.31
March 2005	5.62	7.51
April 2005	5.61	7.91
May 2005	5.47	8.26
June 2005	5.30	7.92
July 2005	5.45	7.77
August 2005	5.50	7.76
September 2005	5.49	7.88
October 2005	5.81	8.20
November 2005	5.94	8.36
December 2005	5.89	8.32
January 2006	5.82	8.21
February 2006	5.95	8.17
March 2006	6.11	8.17
April 2006	6.37	8.24
May 2006	6.47	8.32
June 2006	6.59	8.59
July 2006	6.62	8.69
August 2006	6.41	8.61
September 2006	6.27	8.51
October 2006	6.26	8.39
November 2006	6.06	8.27
December 2006	6.04	8.21
January 2007	6.20	8.21
February 2007	6.11	8.05
March 2007	6.01	8.10
April 2007	6.16	8.03
May 2007	6.18	7.93
June 2007	6.56	8.21
July 2007	6.58	8.73
August 2007	6.56	9.08

Note. Yields from smoothed yield curves.

Source. Merrill Lynch, Moody's Investors Service.

Spreads on Corporate Bonds
Percent

Month	10-year BBB	10-year high yield
January 1990	1.885	5.726
February 1990	1.680	5.887
March 1990	1.698	5.433
April 1990	1.892	5.473
May 1990	1.406	3.144
June 1990	1.485	4.673
July 1990	1.453	3.805
August 1990	1.692	4.340
September 1990	1.459	4.896
October 1990	1.765	5.417
November 1990	1.966	5.270
December 1990	2.144	5.256
January 1991	2.077	5.122
February 1991	1.993	3.957
March 1991	1.693	3.211
April 1991	1.641	3.116
May 1991	1.525	2.800
June 1991	1.494	2.590
July 1991	1.377	2.319
August 1991	1.399	2.493
September 1991	1.383	2.353
October 1991	1.493	2.220
November 1991	1.478	3.064
December 1991	1.330	3.428
January 1992	1.604	3.619
February 1992	1.251	2.985
March 1992	1.322	3.391
April 1992	1.346	3.363
May 1992	1.152	3.480
June 1992	1.059	3.489
July 1992	1.003	3.493
August 1992	1.190	3.999
September 1992	1.182	4.003
October 1992	1.469	4.207
November 1992	1.398	3.898
December 1992	1.293	3.955
January 1993	1.108	3.754
February 1993	1.126	3.755
March 1993	1.310	3.860
April 1993	1.253	3.894
May 1993	1.277	3.639
June 1993	1.078	3.450
July 1993	1.208	3.556
August 1993	1.007	3.517
September 1993	1.326	3.822
October 1993	1.333	3.808
November 1993	1.201	3.655
December 1993	1.140	3.505
January 1994	0.930	3.306
February 1994	1.146	3.307
March 1994	1.290	3.569
April 1994	1.101	3.349
May 1994	1.090	3.343
June 1994	1.322	3.498
July 1994	0.785	3.221
August 1994	0.915	3.231
September 1994	1.160	3.194
October 1994	1.084	2.957
November 1994	1.111	3.104
December 1994	1.240	3.235
January 1995	0.974	3.124
February 1995	0.881	2.992
March 1995	1.103	3.242
April 1995	1.071	3.089
May 1995	0.801	3.060
June 1995	1.153	3.468
July 1995	1.212	3.301
August 1995	0.836	3.164
September 1995	1.010	3.281
October 1995	1.075	3.344
November 1995	0.957	3.361
December 1995	0.984	3.405
January 1996	0.981	3.294
February 1996	1.319	3.354
March 1996	1.077	3.049
April 1996	1.061	2.969
May 1996	1.051	2.997
June 1996	0.739	2.801
July 1996	0.883	2.920
August 1996	1.278	3.096
September 1996	0.784	2.526
October 1996	0.706	2.698
November 1996	0.759	2.779
December 1996	1.016	2.855
January 1997	0.817	2.509
February 1997	0.992	2.584
March 1997	1.050	2.573
April 1997	0.707	2.323
May 1997	0.801	2.314
June 1997	0.866	2.467
July 1997	0.642	2.438
August 1997	0.878	2.583
September 1997	0.752	2.496
October 1997	0.785	2.661
November 1997	1.028	2.781
December 1997	1.015	2.828
January 1998	0.901	3.238
February 1998	0.930	3.140
March 1998	0.929	3.070
April 1998	0.921	3.068
May 1998	0.915	3.204
June 1998	0.936	3.518
July 1998	1.000	3.647
August 1998	1.169	4.152
September 1998	1.596	5.308
October 1998	1.654	5.863
November 1998	1.779	5.285
December 1998	1.632	5.148
January 1999	1.566	5.056
February 1999	1.441	4.810
March 1999	1.375	4.653
April 1999	1.343	4.472
May 1999	1.318	4.379
June 1999	1.406	4.379
July 1999	1.419	4.458
August 1999	1.485	4.442
September 1999	1.531	4.555
October 1999	1.479	4.485
November 1999	1.488	4.557
December 1999	1.438	4.173
January 2000	1.460	4.187
February 2000	1.487	4.470
March 2000	1.627	5.046
April 2000	1.883	5.558
May 2000	2.095	5.382
June 2000	2.104	5.692
July 2000	2.037	5.782
August 2000	2.036	5.994
September 2000	2.030	5.810
October 2000	2.075	6.497
November 2000	2.124	7.099
December 2000	2.223	7.729
January 2001	2.166	6.977
February 2001	2.093	6.259
March 2001	2.132	6.455
April 2001	2.122	6.771
May 2001	1.945	6.248
June 2001	1.900	6.344
July 2001	1.967	6.433
August 2001	1.942	6.322
September 2001	2.112	6.851
October 2001	2.178	7.086
November 2001	2.177	6.136
December 2001	2.018	5.715
January 2002	2.104	5.610
February 2002	2.303	5.776
March 2002	2.187	5.014
April 2002	2.201	5.113
May 2002	2.328	5.142
June 2002	2.240	5.889
July 2002	2.598	6.515
August 2002	2.801	7.186
September 2002	2.807	7.301
October 2002	3.058	7.886
November 2002	2.725	7.066
December 2002	2.449	6.771
January 2003	2.336	6.148
February 2003	2.337	6.319
March 2003	2.260	6.100
April 2003	1.982	5.348
May 2003	1.810	5.290
June 2003	1.754	5.208
July 2003	1.657	4.654
August 2003	1.644	4.620
September 2003	1.550	4.270
October 2003	1.470	3.993
November 2003	1.397	3.822
December 2003	1.336	3.565
January 2004	1.266	3.377
February 2004	1.305	3.638
March 2004	1.351	3.879
April 2004	1.291	3.491
May 2004	1.358	3.636
June 2004	1.356	3.586
July 2004	1.350	3.590
August 2004	1.348	3.672
September 2004	1.277	3.580
October 2004	1.217	3.476
November 2004	1.132	3.138
December 2004	1.065	3.071
January 2005	1.067	3.151
February 2005	1.022	3.052
March 2005	1.031	2.913
April 2005	1.184	3.487
May 2005	1.252	4.043
June 2005	1.229	3.849
July 2005	1.203	3.528
August 2005	1.165	3.425
September 2005	1.216	3.608
October 2005	1.256	3.645
November 2005	1.280	3.696
December 2005	1.321	3.751
January 2006	1.327	3.710
February 2006	1.291	3.513
March 2006	1.281	3.346
April 2006	1.298	3.159
May 2006	1.288	3.132
June 2006	1.411	3.407
July 2006	1.468	3.538
August 2006	1.469	3.667
September 2006	1.469	3.708
October 2006	1.462	3.594
November 2006	1.404	3.611
December 2006	1.400	3.577
January 2007	1.368	3.387
February 2007	1.313	3.250
March 2007	1.363	3.448
April 2007	1.382	3.260
May 2007	1.362	3.112
June 2007	1.384	3.038
July 2007	1.497	3.641
August 2007	1.758	4.286

Note. Measured relative to comparable-maturity Treasuries.

Source. Merrill Lynch, Moody's Investors Service.

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