Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Fed Says Dealer Financing Terms Little Changed, Demand Rising

Dec. 27 (Bloomberg) -- Wall Street dealers are paying more attention to the management of concentrated exposures to central counterparties, a Federal Reserve survey showed today.

About two-thirds of dealers indicated they had increased the amount of resources devoted to management of concentrated credit exposure in the three months through November, the same trend seen in previous surveys. While funding terms were little changed, the survey showed an “evident” uptick in demand for financing.

“For all client types, a greater share of dealers indicated having frequent or at least some discussion with clients regarding prospective transactions involving collateral transformation,” according to the Fed Senior Credit Officer Opinion Survey on Dealer Financing Terms released today. Almost one-third of dealers reported increased demand for funding of agency residential mortgage-backed securities, the Fed said.

The 22 institutions surveyed, who aren’t identified, account for “almost all of the dealer financing of dollar-denominated securities for nondealers and are the most active intermediaries” in over-the-counter derivatives markets, the Fed said. The survey was conducted from Nov. 13 to Nov. 26.

To contact the reporter on this story: Julia Leite in New York at jleite3@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.