US DATA: Fed’s Sr Credit Officer Opinion Survey on Dealer Financing
covered 20 big banks from May 23-Jun 3 and asked about changes from Mar
to May; found “continued gradual easing in credit terms” for major
classes of counterparties, incl hedge funds, pvt pools, ins cos, etc.
Reasons were more-aggressive competition and improvement in general mkt.
Most indicated that time-attention devoted to managing concentrated
exposures was unch. OTC derivs terms for vanilla and customized also
little chgd. Repo saw easing of some financing terms, most evident for
most-favored clients, amid higher demand. Mark and collateral disputes
were generally unch. Special Qs: large nos indicated that there was at
least some unused capacity for all clients, and that unused capacity had
increased over 2011. Less-liq asset funding also increased esp for
high-yield corp, legacy RMBS, and legacy CMBS. Current use of leverage
was mid-way between the pre-crisis peak and the post-crisis trough.