US DATA: Fed’s Sept Sr Credit Officer Survey on Dealer Financing
(conducted Aug 22-Sept 2) “pointed to small changes in credit terms
across major classes of counterparties with no clear overall bias toward
easing or tightening” vs Jun & said “credit terms offered to most major
counterparty types were little changed. However, nonprice terms applied
to hedge funds continued to ease” at a slower pace, while those for
REITS-nonfinancials tightened. 3/4 of dealers reported managing key
exposures more carefully via devoting more resources. 3 special Qs asked
about funding mkts for Tsys (little change on terms, but increased
demand), changes in risk appetite of clients (decreased somewhat, esp by
HF’s), and the use of leverage and financing of different asset types by
trading REITs (increased since Jan). Some repo terms tightened as term
funding demand gained.