US DATA: Fed’s Dec Sr Credit Officer Opinion Survey on Dealer Financing
(survey of 20 important banks taken Nov 15-26, covering Sep-Nov period)
indicated an easing in credit terms for counterparty relationships and
securities financing vs Sept. Dealers noted increase in funding demand
for all types of securities, but little change in the terms/conditions
in OTC derivs mkts. Dealers loosened credit terms to hedge funds and
other private pools of capital, insurance companies and other instits,
and said there was more aggressive competition from other institutions.
Special Q’s: on mtg documentation, 30% said RMBS mkt function suffered;
on HY bonds and total return swaps, 1/3 each said demand increased.