Board of Governors of the Federal Reserve System

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Summary

The December 2018 Senior Credit Officer Opinion Survey on Dealer Financing Terms collected qualitative information on changes over the previous three months in credit terms and conditions in securities financing and over-the-counter (OTC) derivatives markets. In addition to the core questions, the survey included a set of special questions about clients' exposures and positioning with respect to emerging markets and the effects of the turmoil in emerging markets earlier this year on the quantity and terms of financing offered to clients. The 23 institutions participating in the survey account for almost all dealer financing of dollar-denominated securities to nondealers and are the most active intermediaries in OTC derivatives markets. The survey was conducted during the period between November 6, 2018, and November 19, 2018. The core questions asked about changes between September and November 2018. ¹

Core Questions
(Questions 1-79)²

Responses to the core questions in the December survey offered a few insights on recent developments in dealer-intermediated markets. With regard to the credit terms applicable to, and mark and collateral disputes with, different counterparty types across the entire range of securities financing and OTC derivatives transactions, responses to the core questions showed the following:

• About one-third of dealers indicated an increase in the amount of resources and attention devoted to the management of concentrated credit exposure to central counterparties and other financial utilities over the past three months (see the exhibit Management of Concentrated Credit Exposures and Indicators of Supply of Credit).
• In providing credit to their clients, respondents reported that price and nonprice terms were unchanged for most classes of counterparties. Small fractions of respondents reported a tightening in price terms to their nonfinancial corporation clients but an easing in nonprice terms to their trading real estate investment trust (REIT) clients.
• A small fraction of respondents reported that efforts by trading REIT clients to negotiate more-favorable price and nonprice terms had increased somewhat over the past three months.
• A net fraction of roughly one-fifth of respondents indicated that the volume and duration of mark and collateral disputes with other dealers had increased somewhat. Increases in the volume of disputes with hedge funds, mutual funds, and insurance companies were also noted by a small fraction of respondents.

 

With respect to clients' use of financial leverage, on net, dealers indicated little change over the past three months (see the exhibit Use of Financial Leverage) for all classes of counterparties.

With regard to OTC derivatives markets, responses showed the following:

• Initial margin requirements on OTC derivatives were basically unchanged, on net, for average and most-favored clients.
• Roughly one-fifth and one-sixth of respondents indicated that the volume of mark and collateral disputes had increased on interest rate and equity contracts, respectively.

 

With respect to securities financing transactions, respondents indicated the following:

• A small net fraction of dealers indicated a decrease in funding demand for equities, while about one-fifth of dealers reported an increase in funding demand for agency residential mortgage-backed securities (RMBS) over the past three months (see the exhibit Measures of Demand for Funding and Market Functioning). A small net fraction of dealers also reported an increase in the funding demand for non-agency RMBS and consumer asset-backed securities.
• Demand for term funding with a maturity greater than 30 days was reported to be little changed across all asset classes.
• Small fractions of respondents reported an increase in the maximum amount of funding for equities. Small fractions of respondents reported an increase in effective financing rates (spreads over relevant benchmark) for agency RMBS. Effective financing rates for other asset classes were reportedly little changed.
• Roughly one-fifth of dealers reported a deterioration in liquidity and functioning for commercial mortgage-backed securities in the past three months.³ The liquidity and market functioning for other asset classes was reported to have been generally unchanged.

 

Special Questions
(Questions 81-87)

The market turmoil earlier this year in selected emerging market economies (EMEs) reportedly weighed on global investor risk sentiment and led to concerns on the part of market participants about slowing growth outside the United States. In the special questions for the survey this quarter, we asked about clients' exposures and positioning with respect to emerging markets and the effects on the quantity and terms of financing offered to clients.

About three-fourths and two-thirds of the respondents reported that their hedge fund and mutual fund clients, respectively, have some exposure to emerging markets. About one-half of the respondents reported that the other client types—including exchange-traded products (ETPs), pension plans and endowments, insurance companies, separately managed accounts (SMAs), and nonfinancial corporations—have some exposure to emerging markets.

Dealers were asked to rank the instruments most heavily used by clients of each type to gain or manage exposure to emerging markets. The set of instruments include foreign exchange cash (for example, spot foreign exchange), foreign exchange derivatives (for example, foreign exchange swaps), equity cash (for example, stocks), equity derivatives (for example, futures), debt cash (for example, bonds), and debt derivatives (for example, interest rate swaps).

• The instruments used to gain or manage exposure to emerging markets varied across client types, but foreign exchange cash and foreign exchange derivatives were the most popular instruments, followed by debt cash and debt derivatives. Equity instruments were less frequently used.
• Hedge funds and nonfinancial corporations use foreign exchange instruments a bit more frequently than debt instruments, while other types of clients use foreign exchange and debt instruments in roughly equal proportions.
• Concerning the choice between cash or derivative instruments, hedge funds use derivative instruments more frequently, while ETPs, mutual funds, pension funds and endowments, insurance companies, and SMAs use cash more frequently. Nonfinancial corporations are equally likely to use derivatives and cash instruments.

 

With respect to clients' positioning in emerging markets, dealers reported the following:

• With respect to current net positions in emerging markets, about two-fifths to three-fifths of respondents reported that, for client types of ETPs, mutual funds, pension plans and endowment, and insurance companies, either most clients are net long or more clients are net long than net short. This share declines to one-fourth for SMAs.⁴
• With regard to changes in net positioning since the beginning of 2018, respondents indicated that most client types are more likely to have increased short positions or decreased long positions or both in emerging markets than the reverse. In particular, two-thirds of respondents indicated that their hedge fund clients were more likely to have increased short positions. For other client types, the fraction of respondents reporting increases in short positions ranged from one-fifth for mutual funds, pension plans, and endowments to one-third for SMAs.

 

With respect to the effects of emerging markets on the quantity and terms of financing offered to clients, dealers indicated the following:

• Nearly all respondents with clients who are net long in emerging market assets indicated that collection of initial and variation margin is the most important control in managing counterparty exposure to those clients. Limits on long-short gross notional exposure and clients' net financing balances held in prime brokerage accounts were each cited as important by nearly one-half of respondents.
• Nearly all respondents reported that the turmoil in emerging markets earlier this year has not affected the total amount of funding they make available to clients.
• For hedge fund clients with significant emerging market exposure, roughly one-third of respondents reported a tightening in price and nonprice terms. Roughly one-fifth of respondents, on net, reported a tightening in price and nonprice terms for SMA and nonfinancial corporate clients with significant emerging market exposure.

 

This document was prepared by Mary Tian, Division of Monetary Affairs, Board of Governors of the Federal Reserve System. Assistance in developing and administering the survey was provided by staff members in the Capital Markets Function, the Statistics Function, and the Markets Group at the Federal Reserve Bank of New York.

1. For questions that ask about credit terms, net percentages equal the percentage of institutions that reported tightening terms ("tightened considerably" or "tightened somewhat") minus the percentage of institutions that reported easing terms ("eased considerably" or "eased somewhat"). For questions that ask about demand, net fractions equal the percentage of institutions that reported increased demand ("increased considerably" or "increased somewhat") minus the percentage of institutions that reported decreased demand ("decreased considerably" or "decreased somewhat"). Return to text

2. Question 80, not discussed here, was optional and allowed respondents to provide additional comments. Return to text

3. Note that survey respondents were instructed to report changes in liquidity and functioning in the market for the underlying collateral to be funded through repurchase agreements and similar secured financing transactions, not changes in the funding markets themselves. This question was not asked with respect to equity markets in the core questions. Return to text

4. In the survey, long positions in exchange rate instruments are defined as those that rise in value from an appreciation of EME currency against the dollar, long positions in debt (equity) instruments are those that rise in value from a rise in debt (equity) prices, and a client being "net long" indicates that the client has more long than short positions in dollar terms. Return to text

 

Exhibit 1: Management of Concentrated Credit Exposures and Indicators of Supply of Credit

Accessible version

 

Exhibit 2: Use of Financial Leverage

Accessible version

Exhibit 3: Measures of Demand for Funding and Market Functioning

Accessible version

 

Results of the December 2018 Senior Credit Officer Opinion Survey on Dealer Financing Terms

The following results include the original instructions provided to the survey respondents. Please note that percentages are based on the number of financial institutions that gave responses other than "Not applicable." Components may not add to totals due to rounding.

 

 

Counterparty Types

 

Questions 1 through 40 ask about credit terms applicable to, and mark and collateral disputes with, different counterparty types, considering the entire range of securities financing and over-the-counter (OTC) derivatives transactions. Question 1 focuses on dealers and other financial intermediaries as counterparties; questions 2 and 3 on central counterparties and other financial utilities; questions 4 through 10 focus on hedge funds; questions 11 through 16 on trading real estate investment trusts (REITs); questions 17 through 22 on mutual funds, exchange-traded funds (ETFs), pension plans, and endowments; questions 23 through 28 on insurance companies; questions 29 through 34 on separately managed accounts established with investment advisers; and questions 35 through 38 on nonfinancial corporations. Questions 39 and 40 ask about mark and collateral disputes for each of the aforementioned counterparty types.

In some questions, the survey differentiates between the compensation demanded for bearing credit risk (price terms) and the contractual provisions used to mitigate exposures (nonprice terms). If your institution's terms have tightened or eased over the past three months, please so report them regardless of how they stand relative to longer-term norms. Please focus your response on dollar-denominated instruments; if material differences exist with respect to instruments denominated in other currencies, please explain in the appropriate comment space. Where material differences exist across different business areas--for example, between traditional prime brokerage and OTC derivatives--please answer with regard to the business area generating the most exposure and explain in the appropriate comment space.

 

Dealers and Other Financial Intermediaries

 

1. Over the past three months, how has the amount of resources and attention your firm devotes to management of concentrated credit exposure to dealers and other financial intermediaries (such as large banking institutions) changed?

 

Central Counterparties and Other Financial Utilities

 

2. Over the past three months, how has the amount of resources and attention your firm devotes to management of concentrated credit exposure to central counterparties and other financial utilities changed?

 

3. To what extent have changes in the practices of central counterparties, including margin requirements and haircuts, influenced the credit terms your institution applies to clients on bilateral transactions which are not cleared?

 

 

Hedge Funds

 

4. Over the past three months, how have the price terms (for example, financing rates) offered to hedge funds as reflected across the entire spectrum of securities financing and OTC derivatives transaction types changed, regardless of nonprice terms?

 

5. Over the past three months, how has your use of nonprice terms (for example, haircuts, maximum maturity, covenants, cure periods, cross-default provisions or other documentation features) with respect to hedge funds across the entire spectrum of securities financing and OTC derivatives transaction types changed, regardless of price terms?

 

 

6. To the extent that the price or nonprice terms applied to hedge funds have tightened or eased over the past three months (as reflected in your responses to questions 4 and 5), what are the most important reasons for the change?

 

1. Possible reasons for tightening
   1. Deterioration in current or expected financial strength of counterparties

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   2. Reduced willingness of your institution to take on risk

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   3. Adoption of more-stringent market conventions (that is, collateral terms and agreements, ISDA protocols)

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   4. Higher internal treasury charges for funding

      	Number of Respondents	Percent
      Most Important	1	100.0
      2nd Most Important	0	0.0
      3rd Most Important	0	0.0
      Total	1	100.0

   5. Diminished availability of balance sheet or capital at your institution

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   6. Worsening in general market liquidity and functioning

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   7. Less-aggressive competition from other institutions

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   8. Other (please specify)

      	Number of Respondents	Percent
      Very Important	0	Undefined
      Somewhat Important	0	Undefined
      Not Important	0	Undefined
      Total	0	Undefined

2. Possible reasons for easing
   1. Improvement in current or expected financial strength of counterparties

      	Number of Respondents	Percent
      Most Important	1	100.0
      2nd Most Important	0	0.0
      3rd Most Important	0	0.0
      Total	1	100.0

   2. Increased willingness of your institution to take on risk

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   3. Adoption of less-stringent market conventions (that is, collateral terms and agreements, ISDA protocols)

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   4. Lower internal treasury charges for funding

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   5. Increased availability of balance sheet or capital at your institution

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   6. Improvement in general market liquidity and functioning

      	Number of Respondents	Percent
      Most Important	0	0.0
      2nd Most Important	1	100.0
      3rd Most Important	0	0.0
      Total	1	100.0

   7. More-aggressive competition from other institutions

      	Number of Respondents	Percent
      Most Important	1	50.0
      2nd Most Important	0	0.0
      3rd Most Important	1	50.0
      Total	2	100.0

   8. Other (please specify)

      	Number of Respondents	Percent
      Very Important	0	Undefined
      Somewhat Important	0	Undefined
      Not Important	0	Undefined
      Total	0	Undefined

7. How has the intensity of efforts by hedge funds to negotiate more-favorable price and nonprice terms changed over the past three months?

 

8. Considering the entire range of transactions facilitated by your institution for such clients, how has the use of financial leverage by hedge funds changed over the past three months?

 

 

9. Considering the entire range of transactions facilitated by your institution for such clients, how has the availability of additional (and currently unutilized) financial leverage under agreements currently in place with hedge funds (for example, under prime broker, warehouse agreements, and other committed but undrawn or partly drawn facilities) changed over the past three months?

 

 

10. How has the provision of differential terms by your institution to most-favored (as a function of breadth, duration, and extent of relationship) hedge funds changed over the past three months?

 

 

Trading Real Estate Investment Trusts

 

11. Over the past three months, how have the price terms (for example, financing rates) offered to trading REITs as reflected across the entire spectrum of securities financing and OTC derivatives transaction types changed, regardless of nonprice terms?

 

12. Over the past three months, how has your use of nonprice terms (for example, haircuts, maximum maturity, covenants, cure periods, cross-default provisions or other documentation features) with respect to trading REITs across the entire spectrum of securities financing and OTC derivatives transaction types changed, regardless of price terms?

 

 

13. To the extent that the price or nonprice terms applied to trading REITs have tightened or eased over the past three months (as reflected in your responses to questions 11 and 12), what are the most important reasons for the change?

 

1. Possible reasons for tightening
   1. Deterioration in current or expected financial strength of counterparties

      	Number of Respondents	Percent
      Most Important	0	0.0
      2nd Most Important	0	0.0
      3rd Most Important	1	100.0
      Total	1	100.0

   2. Reduced willingness of your institution to take on risk

      	Number of Respondents	Percent
      Most Important	0	0.0
      2nd Most Important	1	100.0
      3rd Most Important	0	0.0
      Total	1	100.0

   3. Adoption of more-stringent market conventions (that is, collateral terms and agreements, ISDA protocols)

      	Number of Respondents	Percent
      Most Important	1	100.0
      2nd Most Important	0	0.0
      3rd Most Important	0	0.0
      Total	1	100.0

   4. Higher internal treasury charges for funding

      	Number of Respondents	Percent
      Most Important	1	100.0
      2nd Most Important	0	0.0
      3rd Most Important	0	0.0
      Total	1	100.0

   5. Diminished availability of balance sheet or capital at your institution

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   6. Worsening in general market liquidity and functioning

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   7. Less-aggressive competition from other institutions

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   8. Other (please specify)

      	Number of Respondents	Percent
      Very Important	0	Undefined
      Somewhat Important	0	Undefined
      Not Important	0	Undefined
      Total	0	Undefined

2. Possible reasons for easing
   1. Improvement in current or expected financial strength of counterparties

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   2. Increased willingness of your institution to take on risk

      	Number of Respondents	Percent
      Most Important	0	0.0
      2nd Most Important	0	0.0
      3rd Most Important	1	100.0
      Total	1	100.0

   3. Adoption of less-stringent market conventions (that is, collateral terms and agreements, ISDA protocols)

      	Number of Respondents	Percent
      Most Important	1	50.0
      2nd Most Important	1	50.0
      3rd Most Important	0	0.0
      Total	2	100.0

   4. Lower internal treasury charges for funding

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   5. Increased availability of balance sheet or capital at your institution

      	Number of Respondents	Percent
      Most Important	1	100.0
      2nd Most Important	0	0.0
      3rd Most Important	0	0.0
      Total	1	100.0

   6. Improvement in general market liquidity and functioning

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   7. More-aggressive competition from other institutions

      	Number of Respondents	Percent
      Most Important	2	66.7
      2nd Most Important	1	33.3
      3rd Most Important	0	0.0
      Total	3	100.0

   8. Other

      	Number of Respondents	Percent
      Very Important	0	Undefined
      Somewhat Important	0	Undefined
      Not Important	0	Undefined
      Total	0	Undefined

14. How has the intensity of efforts by trading REITs to negotiate more-favorable price and nonprice terms changed over the past three months?

 

15. Considering the entire range of transactions facilitated by your institution for such clients, how has the use of financial leverage by trading REITs changed over the past three months?

 

 

16. How has the provision of differential terms by your institution to most-favored (as a function of breadth, duration, and extent of relationship) trading REITs changed over the past three months?

 

 

Mutual Funds, Exchange-Traded Funds, Pension Plans, and Endowments

 

17. Over the past three months, how have the price terms (for example, financing rates) offered to mutual funds, ETFs, pension plans, and endowments as reflected across the entire spectrum of securities financing and OTC derivatives transaction types changed, regardless of nonprice terms?

 

18. Over the past three months, how has your use of nonprice terms (for example, haircuts, maximum maturity, covenants, cure periods, cross-default provisions or other documentation features) with respect to mutual funds, ETFs, pension plans, and endowments across the entire spectrum of securities financing and OTC derivatives transaction types changed, regardless of price terms?

 

 

19. To the extent that the price or nonprice terms applied to mutual funds, ETFs, pension plans, and endowments have tightened or eased over the past three months (as reflected in your responses to questions 17 and 18) what are the most important reasons for the change?

 

1. Possible reasons for tightening
   1. Deterioration in current or expected financial strength of counterparties

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   2. Reduced willingness of your institution to take on risk

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   3. Adoption of more-stringent market conventions (that is, collateral terms and agreements, ISDA protocols)

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   4. Higher internal treasury charges for funding

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   5. Diminished availability of balance sheet or capital at your institution

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   6. Worsening in general market liquidity and functioning

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   7. Less-aggressive competition from other institutions

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   8. Other

      	Number of Respondents	Percent
      Very Important	0	Undefined
      Somewhat Important	0	Undefined
      Not Important	0	Undefined
      Total	0	Undefined

2. Possible reasons for easing
   1. Improvement in current or expected financial strength of counterparties

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   2. Increased willingness of your institution to take on risk

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   3. Adoption of less-stringent market conventions (that is, collateral terms and agreements, ISDA protocols)

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   4. Lower internal treasury charges for funding

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   5. Increased availability of balance sheet or capital at your institution

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   6. Improvement in general market liquidity and functioning

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   7. More-aggressive competition from other institutions

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   8. Other

      	Number of Respondents	Percent
      Very Important	0	Undefined
      Somewhat Important	0	Undefined
      Not Important	0	Undefined
      Total	0	Undefined

20. How has the intensity of efforts by mutual funds, ETFs, pension plans, and endowments to negotiate more-favorable price and nonprice terms changed over the past three months?

 

21. Considering the entire range of transactions facilitated by your institution, how has the use of financial leverage by each of the following types of clients changed over the past three months?

 

1. Mutual funds

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	22	100.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	22	100.0

2. ETFs

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	21	100.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	21	100.0

3. Pension plans

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	21	100.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	21	100.0

4. Endowments

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	20	100.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	20	100.0

22. How has the provision of differential terms by your institution to most-favored (as a function of breadth, duration, and extent of relationship) mutual funds, ETFs, pension plans, and endowments changed over the past three months?

 

Insurance Companies

 

23. Over the past three months, how have the price terms (for example, financing rates) offered to insurance companies as reflected across the entire spectrum of securities financing and OTC derivatives transaction types changed, regardless of nonprice terms?

 

24. Over the past three months, how has your use of nonprice terms (for example, haircuts, maximum maturity, covenants, cure periods, cross-default provisions or other documentation features) with respect to insurance companies across the entire spectrum of securities financing and OTC derivatives transaction types changed, regardless of price terms?

 

 

25. To the extent that the price or nonprice terms applied to insurance companies have tightened or eased over the past three months (as reflected in your responses to questions 23 and 24) what are the most important reasons for the change?

 

1. Possible reasons for tightening
   1. Deterioration in current or expected financial strength of counterparties

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   2. Reduced willingness of your institution to take on risk

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   3. Adoption of more-stringent market conventions (that is, collateral terms and agreements, ISDA protocols)

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   4. Higher internal treasury charges for funding

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   5. Diminished availability of balance sheet or capital at your institution

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   6. Worsening in general market liquidity and functioning

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   7. Less-aggressive competition from other institutions

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   8. Other

      	Number of Respondents	Percent
      Very Important	0	Undefined
      Somewhat Important	0	Undefined
      Not Important	0	Undefined
      Total	0	Undefined

2. Possible reasons for easing
   1. Improvement in current or expected financial strength of counterparties

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   2. Increased willingness of your institution to take on risk

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   3. Adoption of less-stringent market conventions (that is, collateral terms and agreements, ISDA protocols)

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   4. Lower internal treasury charges for funding

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   5. Increased availability of balance sheet or capital at your institution

      	Number of Respondents	Percent
      Most Important	1	100.0
      2nd Most Important	0	0.0
      3rd Most Important	0	0.0
      Total	1	100.0

   6. Improvement in general market liquidity and functioning

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   7. More-aggressive competition from other institutions

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   8. Other

      	Number of Respondents	Percent
      Very Important	0	Undefined
      Somewhat Important	0	Undefined
      Not Important	0	Undefined
      Total	0	Undefined

26. How has the intensity of efforts by insurance companies to negotiate more-favorable price and nonprice terms changed over the past three months?

 

27. Considering the entire range of transactions facilitated by your institution for such clients, how has the use of financial leverage by insurance companies changed over the past three months?

 

 

28. How has the provision of differential terms by your institution to most-favored (as a function of breadth, duration, and extent of relationship) insurance companies changed over the past three months?

 

 

Separately Managed Accounts Established with Investment Advisers

 

29. Over the past three months, how have the price terms (for example, financing rates) offered to separately managed accounts established with investment advisers as reflected across the entire spectrum of securities financing and OTC derivatives transaction types changed, regardless of nonprice terms?

 

30. Over the past three months, how has your use of nonprice terms (for example, haircuts, maximum maturity, covenants, cure periods, cross-default provisions or other documentation features) with respect to separately managed accounts established with investment advisers across the entire spectrum of securities financing and OTC derivatives transaction types changed, regardless of price terms?

 

 

31. To the extent that the price or nonprice terms applied to separately managed accounts established with investment advisers have tightened or eased over the past three months (as reflected in your responses to questions 29 and 30), what are the most important reasons for the change?

 

1. Possible reasons for tightening
   1. Deterioration in current or expected financial strength of counterparties

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   2. Reduced willingness of your institution to take on risk

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   3. Adoption of more-stringent market conventions (that is, collateral terms and agreements, ISDA protocols)

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   4. Higher internal treasury charges for funding

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   5. Diminished availability of balance sheet or capital at your institution

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   6. Worsening in general market liquidity and functioning

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   7. Less-aggressive competition from other institutions

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   8. Other

      	Number of Respondents	Percent
      Very Important	0	Undefined
      Somewhat Important	0	Undefined
      Not Important	0	Undefined
      Total	0	Undefined

2. Possible reasons for easing
   1. Improvement in current or expected financial strength of counterparties

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   2. Increased willingness of your institution to take on risk

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   3. Adoption of less-stringent market conventions (that is, collateral terms and agreements, ISDA protocols)

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   4. Lower internal treasury charges for funding

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   5. Increased availability of balance sheet or capital at your institution

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   6. Improvement in general market liquidity and functioning

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   7. More-aggressive competition from other institutions

      	Number of Respondents	Percent
      Most Important	1	100.0
      2nd Most Important	0	0.0
      3rd Most Important	0	0.0
      Total	1	100.0

   8. Other

      	Number of Respondents	Percent
      Very Important	0	Undefined
      Somewhat Important	0	Undefined
      Not Important	0	Undefined
      Total	0	Undefined

32. How has the intensity of efforts by investment advisers to negotiate more-favorable price and nonprice terms on behalf of separately managed accounts changed over the past three months?

 

33. Considering the entire range of transactions facilitated by your institution for such clients, how has the use of financial leverage by separately managed accounts established with investment advisers changed over the past three months?

 

 

34. How has the provision of differential terms by your institution to separately managed accounts established with most-favored (as a function of breadth, duration, and extent of relationship) investment advisers changed over the past three months?

 

 

Nonfinancial Corporations

 

35. Over the past three months, how have the price terms (for example, financing rates) offered to nonfinancial corporations as reflected across the entire spectrum of securities financing and OTC derivatives transaction types changed, regardless of nonprice terms?

 

36. Over the past three months, how has your use of nonprice terms (for example, haircuts, maximum maturity, covenants, cure periods, cross-default provisions or other documentation features) with respect to nonfinancial corporations across the entire spectrum of securities financing and OTC derivatives transaction types changed, regardless of price terms?

 

 

37. To the extent that the price or nonprice terms applied to nonfinancial corporations have tightened or eased over the past three months (as reflected in your responses to questions 35 and 36) what are the most important reasons for the change?

 

1. Possible reasons for tightening
   1. Deterioration in current or expected financial strength of counterparties

      	Number of Respondents	Percent
      Most Important	1	50.0
      2nd Most Important	1	50.0
      3rd Most Important	0	0.0
      Total	2	100.0

   2. Reduced willingness of your institution to take on risk

      	Number of Respondents	Percent
      Most Important	1	100.0
      2nd Most Important	0	0.0
      3rd Most Important	0	0.0
      Total	1	100.0

   3. Adoption of more-stringent market conventions (that is, collateral terms and agreements, ISDA protocols)

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   4. Higher internal treasury charges for funding

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   5. Diminished availability of balance sheet or capital at your institution

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   6. Worsening in general market liquidity and functioning

      	Number of Respondents	Percent
      Most Important	1	50.0
      2nd Most Important	1	50.0
      3rd Most Important	0	0.0
      Total	2	100.0

   7. Less-aggressive competition from other institutions

      	Number of Respondents	Percent
      Most Important	0	0.0
      2nd Most Important	0	0.0
      3rd Most Important	1	100.0
      Total	1	100.0

   8. Other

      	Number of Respondents	Percent
      Very Important	0	Undefined
      Somewhat Important	0	Undefined
      Not Important	0	Undefined
      Total	0	Undefined

2. Possible reasons for easing
   1. Improvement in current or expected financial strength of counterparties

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   2. Increased willingness of your institution to take on risk

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   3. Adoption of less-stringent market conventions (that is, collateral terms and agreements, ISDA protocols)

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   4. Lower internal treasury charges for funding

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   5. Increased availability of balance sheet or capital at your institution

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   6. Improvement in general market liquidity and functioning

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   7. More-aggressive competition from other institutions

      	Number of Respondents	Percent
      Most Important	0	Undefined
      2nd Most Important	0	Undefined
      3rd Most Important	0	Undefined
      Total	0	Undefined

   8. Other

      	Number of Respondents	Percent
      Very Important	0	Undefined
      Somewhat Important	0	Undefined
      Not Important	0	Undefined
      Total	0	Undefined

38. How has the intensity of efforts by nonfinancial corporations to negotiate more-favorable price and nonprice terms changed over the past three months?

 

Mark and Collateral Disputes

 

39. Over the past three months, how has the volume of mark and collateral disputes with clients of each of the following types changed?

1. Dealers and other financial intermediaries

   	Number of Respondents	Percent
   Increased Considerably	1	4.3
   Increased Somewhat	4	17.4
   Remained Basically Unchanged	18	78.3
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	23	100.0

2. Hedge funds

   	Number of Respondents	Percent
   Increased Considerably	1	4.3
   Increased Somewhat	3	13.0
   Remained Basically Unchanged	19	82.6
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	23	100.0

3. Trading REITs

   	Number of Respondents	Percent
   Increased Considerably	1	5.6
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	17	94.4
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	18	100.0

4. Mutual funds, ETFs, pension plans, and endowments

   	Number of Respondents	Percent
   Increased Considerably	2	10.0
   Increased Somewhat	1	5.0
   Remained Basically Unchanged	17	85.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	20	100.0

5. Insurance companies

   	Number of Respondents	Percent
   Increased Considerably	2	10.0
   Increased Somewhat	1	5.0
   Remained Basically Unchanged	17	85.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	20	100.0

6. Separately managed accounts established with investment advisers

   	Number of Respondents	Percent
   Increased Considerably	1	5.0
   Increased Somewhat	1	5.0
   Remained Basically Unchanged	18	90.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	20	100.0

7. Nonfinancial corporations

   	Number of Respondents	Percent
   Increased Considerably	1	5.0
   Increased Somewhat	1	5.0
   Remained Basically Unchanged	17	85.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	5.0
   Total	20	100.0

40. Over the past three months, how has the duration and persistence of mark and collateral disputes with clients of each of the following types changed?

1. Dealers and other financial intermediaries

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	4	17.4
   Remained Basically Unchanged	18	78.3
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	4.3
   Total	23	100.0

2. Hedge funds

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	3	13.0
   Remained Basically Unchanged	19	82.6
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	4.3
   Total	23	100.0

3. Trading REITs

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	17	94.4
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	5.6
   Total	18	100.0

4. Mutual funds, ETFs, pension plans, and endowments

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	3	15.0
   Remained Basically Unchanged	16	80.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	5.0
   Total	20	100.0

5. Insurance companies

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	3	15.0
   Remained Basically Unchanged	16	80.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	5.0
   Total	20	100.0

6. Separately managed accounts established with investment advisers

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	2	10.0
   Remained Basically Unchanged	16	80.0
   Decreased Somewhat	1	5.0
   Decreased Considerably	1	5.0
   Total	20	100.0

7. Nonfinancial corporations

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	1	5.0
   Remained Basically Unchanged	17	85.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	2	10.0
   Total	20	100.0

 

Over-the-Counter Derivatives

 

Questions 41 through 51 ask about OTC derivatives trades. Question 41 focuses on nonprice terms applicable to new and renegotiated master agreements. Questions 42 through 48 ask about the initial margin requirements for most-favored and average clients applicable to different types of contracts: Question 42 focuses on foreign exchange (FX); question 43 on interest rates; question 44 on equity; question 45 on contracts referencing corporate credits (single-name and indexes); question 46 on credit derivatives referencing structured products such as mortgage-backed securities (MBS) and asset-backed securities (ABS) (specific tranches and indexes); question 47 on commodities; and question 48 on total return swaps (TRS) referencing nonsecurities (such as bank loans, including, for example, commercial and industrial loans and mortgage whole loans). Question 49 asks about posting of nonstandard collateral pursuant to OTC derivatives contracts. Questions 50 and 51 focus on mark and collateral disputes involving contracts of each of the aforementioned types.

If your institution’s terms have tightened or eased over the past three months, please so report them regardless of how they stand relative to longer-term norms. Please focus your response on dollar-denominated instruments; if material differences exist with respect to instruments denominated in other currencies, please explain in the appropriate comment space.

 

New and Renegotiated Master Agreements

 

41. Over the past three months, how have nonprice terms incorporated in new or renegotiated OTC derivatives master agreements put in place with your institution's client changed?

1. Requirements, timelines, and thresholds for posting additional margin

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	1	5.3
   Remained Basically Unchanged	18	94.7
   Eased Somewhat	0	0.0
   Eased Considerably	0	0.0
   Total	19	100.0

2. Acceptable collateral

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	1	5.3
   Remained Basically Unchanged	18	94.7
   Eased Somewhat	0	0.0
   Eased Considerably	0	0.0
   Total	19	100.0

3. Recognition of portfolio or diversification benefits (including from securities financing trades where appropriate agreements are in place)

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	0	0.0
   Remained Basically Unchanged	17	100.0
   Eased Somewhat	0	0.0
   Eased Considerably	0	0.0
   Total	17	100.0

4. Triggers and covenants

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	0	0.0
   Remained Basically Unchanged	19	100.0
   Eased Somewhat	0	0.0
   Eased Considerably	0	0.0
   Total	19	100.0

5. Other documentation features (including cure periods and cross-default provisions)

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	0	0.0
   Remained Basically Unchanged	19	100.0
   Eased Somewhat	0	0.0
   Eased Considerably	0	0.0
   Total	19	100.0

6. Other

   	Number of Respondents	Percent
   Tightened Considerably	0	Undefined
   Tightened Somewhat	0	Undefined
   Remained Basically Unchanged	0	Undefined
   Eased Somewhat	0	Undefined
   Eased Considerably	0	Undefined
   Total	0	Undefined

 

Initial Margin

 

42. Over the past three months, how have initial margin requirements set by your institution with respect to OTC FX derivatives changed?

1. Initial margin requirements for average clients

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	1	4.5
   Remained Basically Unchanged	21	95.5
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	22	100.0

2. Initial margin requirements for most-favored clients, as a consequence of breadth, duration, and/or extent of relationship

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	22	100.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	22	100.0

43. Over the past three months, how have initial margin requirements set by your institution with respect to OTC interest rate derivatives changed?

1. Initial margin requirements for average clients

   	Number of Respondents	Percent
   Increased Considerably	1	4.5
   Increased Somewhat	1	4.5
   Remained Basically Unchanged	20	90.9
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	22	100.0

2. Initial margin requirements for most-favored clients, as a consequence of breadth, duration, and/or extent of relationship

   	Number of Respondents	Percent
   Increased Considerably	1	4.5
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	21	95.5
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	22	100.0

44. Over the past three months, how have initial margin requirements set by your institution with respect to OTC equity derivatives changed?

1. Initial margin requirements for average clients

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	21	95.5
   Decreased Somewhat	1	4.5
   Decreased Considerably	0	0.0
   Total	22	100.0

2. Initial margin requirements for most-favored clients, as a consequence of breadth, duration, and/or extent of relationship

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	22	100.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	22	100.0

45. Over the past three months, how have initial margin requirements set by your institution with respect to OTC credit derivatives referencing corporates (single-name corporates or corporate indexes) changed?

1. Initial margin requirements for average clients

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	20	95.2
   Decreased Somewhat	1	4.8
   Decreased Considerably	0	0.0
   Total	21	100.0

2. Initial margin requirements for most-favored clients, as a consequence of breadth, duration, and/or extent of relationship

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	21	100.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	21	100.0

46. Over the past three months, how have initial margin requirements set by your institution with respect to OTC credit derivatives referencing securitized products (such as specific ABS or MBS tranches and associated indexes) changed?

1. Initial margin requirements for average clients

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	16	94.1
   Decreased Somewhat	1	5.9
   Decreased Considerably	0	0.0
   Total	17	100.0

2. Initial margin requirements for most-favored clients, as a consequence of breadth, duration, and/or extent of relationship

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	17	100.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	17	100.0

47. Over the past three months, how have initial margin requirements set by your institution with respect to OTC commodity derivatives changed?

1. Initial margin requirements for average clients

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	19	100.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	19	100.0

2. Initial margin requirements for most-favored clients, as a consequence of breadth, duration, and/or extent of relationship

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	19	100.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	19	100.0

48. Over the past three months, how have initial margin requirements set by your institution with respect to TRS referencing nonsecurities (such as bank loans, including, for example, commercial and industrial loans and mortgage whole loans) changed?

1. Initial margin requirements for average clients

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	19	100.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	19	100.0

2. Initial margin requirements for most-favored clients, as a consequence of breadth, duration, and/or extent of relationship

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	19	100.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	19	100.0

 

Nonstandard Collateral

 

49. Over the past three months, how has the posting of nonstandard collateral (that is, other than cash and U.S. Treasury securities) as permitted under relevant agreements changed?

 

Mark and Collateral Disputes

 

50. Over the past three months, how has the volume of mark and collateral disputes relating to contracts of each of the following types changed?

1. FX

   	Number of Respondents	Percent
   Increased Considerably	2	10.5
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	17	89.5
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	19	100.0

2. Interest rate

   	Number of Respondents	Percent
   Increased Considerably	1	5.0
   Increased Somewhat	3	15.0
   Remained Basically Unchanged	16	80.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	20	100.0

3. Equity

   	Number of Respondents	Percent
   Increased Considerably	1	5.6
   Increased Somewhat	2	11.1
   Remained Basically Unchanged	15	83.3
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	18	100.0

4. Credit referencing corporates

   	Number of Respondents	Percent
   Increased Considerably	1	5.9
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	16	94.1
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	17	100.0

5. Credit referencing securitized products including MBS and ABS

   	Number of Respondents	Percent
   Increased Considerably	1	5.9
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	16	94.1
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	17	100.0

6. Commodity

   	Number of Respondents	Percent
   Increased Considerably	2	12.5
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	14	87.5
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	16	100.0

7. TRS referencing nonsecurities (such as bank loans, including, for example, commercial and industrial loans and mortgage whole loans)

   	Number of Respondents	Percent
   Increased Considerably	2	12.5
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	14	87.5
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	16	100.0

51. Over the past three months, how has the duration and persistence of mark and collateral disputes relating to contracts of each of the following types changed?

1. FX

   	Number of Respondents	Percent
   Increased Considerably	1	5.3
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	17	89.5
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	5.3
   Total	19	100.0

2. Interest rate

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	2	10.0
   Remained Basically Unchanged	16	80.0
   Decreased Somewhat	1	5.0
   Decreased Considerably	1	5.0
   Total	20	100.0

3. Equity

   	Number of Respondents	Percent
   Increased Considerably	1	5.6
   Increased Somewhat	1	5.6
   Remained Basically Unchanged	15	83.3
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	5.6
   Total	18	100.0

4. Credit referencing corporates

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	1	5.6
   Remained Basically Unchanged	16	88.9
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	5.6
   Total	18	100.0

5. Credit referencing securitized products including MBS and ABS

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	16	94.1
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	5.9
   Total	17	100.0

6. Commodity

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	1	6.3
   Remained Basically Unchanged	14	87.5
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	6.3
   Total	16	100.0

7. TRS referencing nonsecurities (such as bank loans, including, for example, commercial and industrial loans and mortgage whole loans)

   	Number of Respondents	Percent
   Increased Considerably	1	6.3
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	14	87.5
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	6.3
   Total	16	100.0

 

Securities Financing

 

Questions 52 through 79 ask about securities funding at your institution--that is, lending to clients collateralized by securities. Such activities may be conducted on a "repo" desk, on a trading desk engaged in facilitation for institutional clients and/or proprietary transactions, on a funding desk, or on a prime brokerage platform. Questions 52 through 55 focus on lending against high-grade corporate bonds; questions 56 through 59 on lending against high-yield corporate bonds; questions 60 and 61 on lending against equities (including through stock loan); questions 62 through 65 on lending against agency residential mortgage-backed securities (agency RMBS); questions 66 through 69 on lending against non-agency residential mortgage-backed securities (non-agency RMBS); questions 70 through 73 on lending against commercial mortgage-backed securities (CMBS); and questions 74 through 77 on consumer ABS (for example, backed by credit card receivables or auto loans). Questions 78 and 79 ask about mark and collateral disputes for lending backed by each of the aforementioned contract types.

If your institution’s terms have tightened or eased over the past three months, please so report them regardless of how they stand relative to longer-term norms. Please focus your response on dollar-denominated instruments; if material differences exist with respect to instruments denominated in other currencies, please explain in the appropriate comment space.

 

High-Grade Corporate Bonds

 

52. Over the past three months, how have the terms under which high-grade corporate bonds are funded changed?

1. Terms for average clients
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	21	95.5
      Eased Somewhat	1	4.5
      Eased Considerably	0	0.0
      Total	22	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	21	95.5
      Eased Somewhat	1	4.5
      Eased Considerably	0	0.0
      Total	22	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	4.8
      Remained Basically Unchanged	19	90.5
      Eased Somewhat	1	4.8
      Eased Considerably	0	0.0
      Total	21	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	1	4.5
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	20	90.9
      Eased Somewhat	1	4.5
      Eased Considerably	0	0.0
      Total	22	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

2. Terms for most-favored clients, as a consequence of breadth, duration and/or extent of relationship
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	20	90.9
      Eased Somewhat	2	9.1
      Eased Considerably	0	0.0
      Total	22	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	22	100.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	22	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	20	95.2
      Eased Somewhat	1	4.8
      Eased Considerably	0	0.0
      Total	21	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	20	90.9
      Eased Somewhat	2	9.1
      Eased Considerably	0	0.0
      Total	22	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

53. Over the past three months, how has demand for funding of high-grade corporate bonds by your institution's clients changed?

 

54. Over the past three months, how has demand for term funding with a maturity greater than 30 days of high-grade corporate bonds by your institution's clients changed?

 

 

55. Over the past three months, how have liquidity and functioning in the high-grade corporate bond market changed?

 

 

High-Yield Corporate Bonds

 

56. Over the past three months, how have the terms under which high-yield corporate bonds are funded changed?

1. Terms for average clients
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	18	100.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	18	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	17	94.4
      Eased Somewhat	1	5.6
      Eased Considerably	0	0.0
      Total	18	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	5.6
      Remained Basically Unchanged	17	94.4
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	18	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	5.6
      Remained Basically Unchanged	15	83.3
      Eased Somewhat	2	11.1
      Eased Considerably	0	0.0
      Total	18	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

2. Terms for most-favored clients, as a consequence of breadth, duration and/or extent of relationship
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	17	94.4
      Eased Somewhat	1	5.6
      Eased Considerably	0	0.0
      Total	18	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	18	100.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	18	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	18	100.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	18	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	2	11.1
      Remained Basically Unchanged	15	83.3
      Eased Somewhat	1	5.6
      Eased Considerably	0	0.0
      Total	18	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

57. Over the past three months, how has demand for funding of high-yield corporate bonds by your institution's clients changed?

 

58. Over the past three months, how has demand for term funding with a maturity greater than 30 days of high-yield corporate bonds by your institution's clients changed?

 

 

59. Over the past three months, how have liquidity and functioning in the high-yield corporate bond market changed?

 

 

Equities (Including through Stock Loan)

 

60. Over the past three months, how have the terms under which equities are funded (including through stock loan) changed?

1. Terms for average clients
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	16	80.0
      Eased Somewhat	4	20.0
      Eased Considerably	0	0.0
      Total	20	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	5.0
      Remained Basically Unchanged	18	90.0
      Eased Somewhat	1	5.0
      Eased Considerably	0	0.0
      Total	20	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	20	100.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	20	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	5.0
      Remained Basically Unchanged	17	85.0
      Eased Somewhat	2	10.0
      Eased Considerably	0	0.0
      Total	20	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

2. Terms for most-favored clients, as a consequence of breadth, duration and/or extent of relationship
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	17	85.0
      Eased Somewhat	3	15.0
      Eased Considerably	0	0.0
      Total	20	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	5.0
      Remained Basically Unchanged	18	90.0
      Eased Somewhat	1	5.0
      Eased Considerably	0	0.0
      Total	20	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	20	100.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	20	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	2	10.0
      Remained Basically Unchanged	16	80.0
      Eased Somewhat	2	10.0
      Eased Considerably	0	0.0
      Total	20	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

61. Over the past three months, how has demand for funding of equities (including through stock loan) by your institution's clients changed?

 

Agency Residential Mortgage-Backed Securities

 

62. Over the past three months, how have the terms under which agency RMBS are funded changed?

1. Terms for average clients
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	5.0
      Remained Basically Unchanged	18	90.0
      Eased Somewhat	1	5.0
      Eased Considerably	0	0.0
      Total	20	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	5.0
      Remained Basically Unchanged	18	90.0
      Eased Somewhat	1	5.0
      Eased Considerably	0	0.0
      Total	20	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	5.0
      Remained Basically Unchanged	19	95.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	20	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	3	15.0
      Remained Basically Unchanged	17	85.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	20	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

2. Terms for most-favored clients, as a consequence of breadth, duration and/or extent of relationship
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	5.0
      Remained Basically Unchanged	19	95.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	20	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	5.0
      Remained Basically Unchanged	18	90.0
      Eased Somewhat	1	5.0
      Eased Considerably	0	0.0
      Total	20	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	5.0
      Remained Basically Unchanged	19	95.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	20	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	3	15.0
      Remained Basically Unchanged	17	85.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	20	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

63. Over the past three months, how has demand for funding of agency RMBS by your institution's clients changed?

 

64. Over the past three months, how has demand for term funding with a maturity greater than 30 days of agency RMBS by your institution's clients changed?

 

 

65. Over the past three months, how have liquidity and functioning in the agency RMBS market changed?

 

 

Non-Agency Residential Mortgage-Backed Securities

 

66. Over the past three months, how have the terms under which non-agency RMBS are funded changed?

1. Terms for average clients
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	16	100.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	16	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.3
      Remained Basically Unchanged	15	93.8
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	16	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.3
      Remained Basically Unchanged	15	93.8
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	16	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.3
      Remained Basically Unchanged	12	75.0
      Eased Somewhat	3	18.8
      Eased Considerably	0	0.0
      Total	16	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

2. Terms for most-favored clients, as a consequence of breadth, duration and/or extent of relationship
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	16	100.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	16	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.3
      Remained Basically Unchanged	15	93.8
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	16	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.3
      Remained Basically Unchanged	15	93.8
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	16	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.3
      Remained Basically Unchanged	12	75.0
      Eased Somewhat	3	18.8
      Eased Considerably	0	0.0
      Total	16	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

67. Over the past three months, how has demand for funding of non-agency RMBS by your institution's clients changed?

 

68. Over the past three months, how has demand for term funding with a maturity greater than 30 days of non-agency RMBS by your institution's clients changed?

 

 

69. Over the past three months, how have liquidity and functioning in the non-agency RMBS market changed?

 

 

Commercial Mortgage-Backed Securities

 

70. Over the past three months, how have the terms under which CMBS are funded changed?

1. Terms for average clients
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	15	100.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	15	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	15	100.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	15	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.7
      Remained Basically Unchanged	14	93.3
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	15	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.7
      Remained Basically Unchanged	11	73.3
      Eased Somewhat	3	20.0
      Eased Considerably	0	0.0
      Total	15	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

2. Terms for most-favored clients, as a consequence of breadth, duration and/or extent of relationship
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	14	93.3
      Eased Somewhat	1	6.7
      Eased Considerably	0	0.0
      Total	15	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	15	100.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	15	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.7
      Remained Basically Unchanged	14	93.3
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	15	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.7
      Remained Basically Unchanged	12	80.0
      Eased Somewhat	2	13.3
      Eased Considerably	0	0.0
      Total	15	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

71. Over the past three months, how has demand for funding of CMBS by your institution's clients changed?

 

72. Over the past three months, how has demand for term funding with a maturity greater than 30 days of CMBS by your institution's clients changed?

 

 

73. Over the past three months, how have liquidity and functioning in the CMBS market changed?

 

 

Consumer Asset-Backed Securities

 

74. Over the past three months, how have the terms under which consumer ABS (for example, backed by credit card receivables or auto loans) are funded changed?

1. Terms for average clients
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	15	100.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	15	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	14	93.3
      Eased Somewhat	1	6.7
      Eased Considerably	0	0.0
      Total	15	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.7
      Remained Basically Unchanged	14	93.3
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	15	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.7
      Remained Basically Unchanged	10	66.7
      Eased Somewhat	4	26.7
      Eased Considerably	0	0.0
      Total	15	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

2. Terms for most-favored clients, as a consequence of breadth, duration and/or extent of relationship
   1. Maximum amount of funding

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	15	100.0
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	15	100.0

   2. Maximum maturity

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	0	0.0
      Remained Basically Unchanged	14	93.3
      Eased Somewhat	1	6.7
      Eased Considerably	0	0.0
      Total	15	100.0

   3. Haircuts

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.7
      Remained Basically Unchanged	14	93.3
      Eased Somewhat	0	0.0
      Eased Considerably	0	0.0
      Total	15	100.0

   4. Collateral spreads over relevant benchmark (effective financing rates)

      	Number of Respondents	Percent
      Tightened Considerably	0	0.0
      Tightened Somewhat	1	6.7
      Remained Basically Unchanged	11	73.3
      Eased Somewhat	3	20.0
      Eased Considerably	0	0.0
      Total	15	100.0

   5. Other

      	Number of Respondents	Percent
      Tightened Considerably	0	Undefined
      Tightened Somewhat	0	Undefined
      Remained Basically Unchanged	0	Undefined
      Eased Somewhat	0	Undefined
      Eased Considerably	0	Undefined
      Total	0	Undefined

75. Over the past three months, how has demand for funding of consumer ABS by your institution's clients changed?

 

76. Over the past three months, how has demand for term funding with a maturity greater than 30 days of consumer ABS by your institution's clients changed?

 

 

77. Over the past three months, how have liquidity and functioning in the consumer ABS market changed?

 

 

Mark and Collateral Disputes

 

78. Over the past three months, how has the volume of mark and collateral disputes relating to lending against each of the following collateral types changed?

1. High-grade corporate bonds

   	Number of Respondents	Percent
   Increased Considerably	1	4.5
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	21	95.5
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	22	100.0

2. High-yield corporate bonds

   	Number of Respondents	Percent
   Increased Considerably	1	5.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	19	95.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	20	100.0

3. Equities

   	Number of Respondents	Percent
   Increased Considerably	1	5.6
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	17	94.4
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	18	100.0

4. Agency RMBS

   	Number of Respondents	Percent
   Increased Considerably	1	5.0
   Increased Somewhat	1	5.0
   Remained Basically Unchanged	18	90.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	20	100.0

5. Non-agency RMBS

   	Number of Respondents	Percent
   Increased Considerably	1	6.3
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	15	93.8
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	16	100.0

6. CMBS

   	Number of Respondents	Percent
   Increased Considerably	1	6.3
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	15	93.8
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	16	100.0

7. Consumer ABS

   	Number of Respondents	Percent
   Increased Considerably	1	7.1
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	13	92.9
   Decreased Somewhat	0	0.0
   Decreased Considerably	0	0.0
   Total	14	100.0

79. Over the past three months, how has the duration and persistence of mark and collateral disputes relating to lending against each of the following collateral types changed?

1. High-grade corporate bonds

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	21	95.5
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	4.5
   Total	22	100.0

2. High-yield corporate bonds

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	19	95.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	5.0
   Total	20	100.0

3. Equities

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	18	94.7
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	5.3
   Total	19	100.0

4. Agency RMBS

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	19	95.0
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	5.0
   Total	20	100.0

5. Non-agency RMBS

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	14	93.3
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	6.7
   Total	15	100.0

6. CMBS

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	15	93.8
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	6.3
   Total	16	100.0

7. Consumer ABS

   	Number of Respondents	Percent
   Increased Considerably	0	0.0
   Increased Somewhat	0	0.0
   Remained Basically Unchanged	13	92.9
   Decreased Somewhat	0	0.0
   Decreased Considerably	1	7.1
   Total	14	100.0

 

Optional Question

 

Question 80 requests feedback on any other issues you judge to be important relating to credit terms applicable to securities financing transactions and OTC derivatives contracts.

Special Questions on the effect of recent turmoil in emerging markets¹

The recent market turmoil in selected emerging market economies (EMEs) has reportedly weighed on global investor risk sentiment and led to concerns on the part of market participants about slowing growth outside the United States. In these special questions, we ask about clients’ exposures and positioning with respect to emerging markets (questions 81 to 83) and the effects on the quantity and terms of financing that your firm offers to clients (questions 84 to 87).

81. Which instruments are most heavily used by your clients of each type to gain or manage exposure to emerging markets?

1. Hedge funds
   1. Foreign exchange cash

      	Number of Respondents	Percent
      Most important factor	5	62.5
      2nd most important factor	1	12.5
      3rd most important factor	2	25.0
      Total	8	100.0

   2. Foreign exchange derivatives

      	Number of Respondents	Percent
      Most important factor	6	46.2
      2nd most important factor	4	30.8
      3rd most important factor	3	23.1
      Total	13	100.0

   3. Equity cash

      	Number of Respondents	Percent
      Most important factor	1	100.0
      2nd most important factor	0	0.0
      3rd most important factor	0	0.0
      Total	1	100.0

   4. Equity derivatives

      	Number of Respondents	Percent
      Most important factor	1	14.3
      2nd most important factor	1	14.3
      3rd most important factor	5	71.4
      Total	7	100.0

   5. Debt cash

      	Number of Respondents	Percent
      Most important factor	3	60.0
      2nd most important factor	1	20.0
      3rd most important factor	1	20.0
      Total	5	100.0

   6. Debt derivatives

      	Number of Respondents	Percent
      Most important factor	1	10.0
      2nd most important factor	7	70.0
      3rd most important factor	2	20.0
      Total	10	100.0

   7. Other (please specify)

      	Number of Respondents	Percent
      Most important factor	0	0.0
      2nd most important factor	2	66.7
      3rd most important factor	1	33.3
      Total	3	100.0

   8. None/they have limited exposure

      	Number of Respondents	Percent
      Most important factor	6	100.0
      2nd most important factor	0	0.0
      3rd most important factor	0	0.0
      Total	6	100.0

2. Exchange-traded products
   1. Foreign exchange cash

      	Number of Respondents	Percent
      Most important factor	4	50.0
      2nd most important factor	2	25.0
      3rd most important factor	2	25.0
      Total	8	100.0

   2. Foreign exchange derivatives

      	Number of Respondents	Percent
      Most important factor	0	0.0
      2nd most important factor	2	50.0
      3rd most important factor	2	50.0
      Total	4	100.0

   3. Equity cash

      	Number of Respondents	Percent
      Most important factor	2	66.7
      2nd most important factor	0	0.0
      3rd most important factor	1	33.3
      Total	3	100.0

   4. Equity derivatives

      	Number of Respondents	Percent
      Most important factor	1	50.0
      2nd most important factor	0	0.0
      3rd most important factor	1	50.0
      Total	2	100.0

   5. Debt cash

      	Number of Respondents	Percent
      Most important factor	6	66.7
      2nd most important factor	2	22.2
      3rd most important factor	1	11.1
      Total	9	100.0

   6. Debt derivatives

      	Number of Respondents	Percent
      Most important factor	0	0.0
      2nd most important factor	2	100.0
      3rd most important factor	0	0.0
      Total	2	100.0

   7. Other (please specify)

      	Number of Respondents	Percent
      Most important factor	0	Undefined
      2nd most important factor	0	Undefined
      3rd most important factor	0	Undefined
      Total	0	Undefined

   8. None/they have limited exposure

      	Number of Respondents	Percent
      Most important factor	10	100.0
      2nd most important factor	0	0.0
      3rd most important factor	0	0.0
      Total	10	100.0

3. Mutual funds
   1. Foreign exchange cash

      	Number of Respondents	Percent
      Most important factor	6	60.0
      2nd most important factor	2	20.0
      3rd most important factor	2	20.0
      Total	10	100.0

   2. Foreign exchange derivatives

      	Number of Respondents	Percent
      Most important factor	1	11.1
      2nd most important factor	4	44.4
      3rd most important factor	4	44.4
      Total	9	100.0

   3. Equity cash

      	Number of Respondents	Percent
      Most important factor	2	50.0
      2nd most important factor	1	25.0
      3rd most important factor	1	25.0
      Total	4	100.0

   4. Equity derivatives

      	Number of Respondents	Percent
      Most important factor	2	50.0
      2nd most important factor	0	0.0
      3rd most important factor	2	50.0
      Total	4	100.0

   5. Debt cash

      	Number of Respondents	Percent
      Most important factor	4	50.0
      2nd most important factor	3	37.5
      3rd most important factor	1	12.5
      Total	8	100.0

   6. Debt derivatives

      	Number of Respondents	Percent
      Most important factor	0	0.0
      2nd most important factor	2	66.7
      3rd most important factor	1	33.3
      Total	3	100.0

   7. Other (please specify)

      	Number of Respondents	Percent
      Most important factor	0	Undefined
      2nd most important factor	0	Undefined
      3rd most important factor	0	Undefined
      Total	0	Undefined

   8. None/they have limited exposure

      	Number of Respondents	Percent
      Most important factor	8	100.0
      2nd most important factor	0	0.0
      3rd most important factor	0	0.0
      Total	8	100.0

4. Pension plans and endowments
   1. Foreign exchange cash

      	Number of Respondents	Percent
      Most important factor	4	66.7
      2nd most important factor	2	33.3
      3rd most important factor	0	0.0
      Total	6	100.0

   2. Foreign exchange derivatives

      	Number of Respondents	Percent
      Most important factor	1	14.3
      2nd most important factor	2	28.6
      3rd most important factor	4	57.1
      Total	7	100.0

   3. Equity cash

      	Number of Respondents	Percent
      Most important factor	2	50.0
      2nd most important factor	1	25.0
      3rd most important factor	1	25.0
      Total	4	100.0

   4. Equity derivatives

      	Number of Respondents	Percent
      Most important factor	1	50.0
      2nd most important factor	0	0.0
      3rd most important factor	1	50.0
      Total	2	100.0

   5. Debt cash

      	Number of Respondents	Percent
      Most important factor	5	55.6
      2nd most important factor	3	33.3
      3rd most important factor	1	11.1
      Total	9	100.0

   6. Debt derivatives

      	Number of Respondents	Percent
      Most important factor	0	0.0
      2nd most important factor	2	66.7
      3rd most important factor	1	33.3
      Total	3	100.0

   7. Other (please specify)

      	Number of Respondents	Percent
      Most important factor	0	0.0
      2nd most important factor	0	0.0
      3rd most important factor	1	100.0
      Total	1	100.0

   8. None/they have limited exposure

      	Number of Respondents	Percent
      Most important factor	10	100.0
      2nd most important factor	0	0.0
      3rd most important factor	0	0.0
      Total	10	100.0

5. Insurance companies
   1. Foreign exchange cash

      	Number of Respondents	Percent
      Most important factor	3	60.0
      2nd most important factor	2	40.0
      3rd most important factor	0	0.0
      Total	5	100.0

   2. Foreign exchange derivatives

      	Number of Respondents	Percent
      Most important factor	2	25.0
      2nd most important factor	3	37.5
      3rd most important factor	3	37.5
      Total	8	100.0

   3. Equity cash

      	Number of Respondents	Percent
      Most important factor	0	0.0
      2nd most important factor	1	100.0
      3rd most important factor	0	0.0
      Total	1	100.0

   4. Equity derivatives

      	Number of Respondents	Percent
      Most important factor	1	33.3
      2nd most important factor	1	33.3
      3rd most important factor	1	33.3
      Total	3	100.0

   5. Debt cash

      	Number of Respondents	Percent
      Most important factor	6	75.0
      2nd most important factor	1	12.5
      3rd most important factor	1	12.5
      Total	8	100.0

   6. Debt derivatives

      	Number of Respondents	Percent
      Most important factor	0	0.0
      2nd most important factor	2	50.0
      3rd most important factor	2	50.0
      Total	4	100.0

   7. Other (please specify)

      	Number of Respondents	Percent
      Most important factor	0	0.0
      2nd most important factor	1	33.3
      3rd most important factor	2	66.7
      Total	3	100.0

   8. None/they have limited exposure

      	Number of Respondents	Percent
      Most important factor	11	100.0
      2nd most important factor	0	0.0
      3rd most important factor	0	0.0
      Total	11	100.0

6. Separately managed accounts established with investment advisors
   1. Foreign exchange cash

      	Number of Respondents	Percent
      Most important factor	4	80.0
      2nd most important factor	1	20.0
      3rd most important factor	0	0.0
      Total	5	100.0

   2. Foreign exchange derivatives

      	Number of Respondents	Percent
      Most important factor	1	12.5
      2nd most important factor	3	37.5
      3rd most important factor	4	50.0
      Total	8	100.0

   3. Equity cash

      	Number of Respondents	Percent
      Most important factor	1	100.0
      2nd most important factor	0	0.0
      3rd most important factor	0	0.0
      Total	1	100.0

   4. Equity derivatives

      	Number of Respondents	Percent
      Most important factor	1	33.3
      2nd most important factor	1	33.3
      3rd most important factor	1	33.3
      Total	3	100.0

   5. Debt cash

      	Number of Respondents	Percent
      Most important factor	4	57.1
      2nd most important factor	3	42.9
      3rd most important factor	0	0.0
      Total	7	100.0

   6. Debt derivatives

      	Number of Respondents	Percent
      Most important factor	1	33.3
      2nd most important factor	1	33.3
      3rd most important factor	1	33.3
      Total	3	100.0

   7. Other (please specify)

      	Number of Respondents	Percent
      Most important factor	1	50.0
      2nd most important factor	0	0.0
      3rd most important factor	1	50.0
      Total	2	100.0

   8. None/they have limited exposure

      	Number of Respondents	Percent
      Most important factor	10	100.0
      2nd most important factor	0	0.0
      3rd most important factor	0	0.0
      Total	10	100.0

7. Nonfinancial corporations
   1. Foreign exchange cash

      	Number of Respondents	Percent
      Most important factor	7	77.8
      2nd most important factor	1	11.1
      3rd most important factor	1	11.1
      Total	9	100.0

   2. Foreign exchange derivatives

      	Number of Respondents	Percent
      Most important factor	0	0.0
      2nd most important factor	6	85.7
      3rd most important factor	1	14.3
      Total	7	100.0

   3. Equity cash

      	Number of Respondents	Percent
      Most important factor	1	100.0
      2nd most important factor	0	0.0
      3rd most important factor	0	0.0
      Total	1	100.0

   4. Equity derivatives

      	Number of Respondents	Percent
      Most important factor	0	Undefined
      2nd most important factor	0	Undefined
      3rd most important factor	0	Undefined
      Total	0	Undefined

   5. Debt cash

      	Number of Respondents	Percent
      Most important factor	1	33.3
      2nd most important factor	1	33.3
      3rd most important factor	1	33.3
      Total	3	100.0

   6. Debt derivatives

      	Number of Respondents	Percent
      Most important factor	1	20.0
      2nd most important factor	1	20.0
      3rd most important factor	3	60.0
      Total	5	100.0

   7. Other (please specify)

      	Number of Respondents	Percent
      Most important factor	0	0.0
      2nd most important factor	0	0.0
      3rd most important factor	1	100.0
      Total	1	100.0

   8. None/they have limited exposure

      	Number of Respondents	Percent
      Most important factor	13	100.0
      2nd most important factor	0	0.0
      3rd most important factor	0	0.0
      Total	13	100.0

 

82. How would you characterize current net positions in emerging markets held by your clients of each of the following types?

 

1. Hedge funds

   	Number of Respondents	Percent
   Most Clients Are Net Long	0	0.0
   More Clients Are Net Long Than Net Short	3	18.8
   Roughly Equal Proportions Of Clients Are Net Long And Net Short	8	50.0
   More Clients Are Net Short Than Net Long	3	18.8
   Most Clients Are Net Short	0	0.0
   Most Clients Do Not Have Net Directional Exposure To Emerging Markets	2	12.5
   Total	16	100.0

2. Exchange-traded products

   	Number of Respondents	Percent
   Most Clients Are Net Long	4	33.3
   More Clients Are Net Long Than Net Short	1	8.3
   Roughly Equal Proportions Of Clients Are Net Long And Net Short	2	16.7
   More Clients Are Net Short Than Net Long	0	0.0
   Most Clients Are Net Short	0	0.0
   Most Clients Do Not Have Net Directional Exposure To Emerging Markets	5	41.7
   Total	12	100.0

3. Mutual funds

   	Number of Respondents	Percent
   Most Clients Are Net Long	5	38.5
   More Clients Are Net Long Than Net Short	2	15.4
   Roughly Equal Proportions Of Clients Are Net Long And Net Short	1	7.7
   More Clients Are Net Short Than Net Long	0	0.0
   Most Clients Are Net Short	0	0.0
   Most Clients Do Not Have Net Directional Exposure To Emerging Markets	5	38.5
   Total	13	100.0

4. Pension plans and endowments

   	Number of Respondents	Percent
   Most Clients Are Net Long	4	30.8
   More Clients Are Net Long Than Net Short	4	30.8
   Roughly Equal Proportions Of Clients Are Net Long And Net Short	1	7.7
   More Clients Are Net Short Than Net Long	0	0.0
   Most Clients Are Net Short	0	0.0
   Most Clients Do Not Have Net Directional Exposure To Emerging Markets	4	30.8
   Total	13	100.0

5. Insurance companies

   	Number of Respondents	Percent
   Most Clients Are Net Long	4	33.3
   More Clients Are Net Long Than Net Short	2	16.7
   Roughly Equal Proportions Of Clients Are Net Long And Net Short	1	8.3
   More Clients Are Net Short Than Net Long	0	0.0
   Most Clients Are Net Short	0	0.0
   Most Clients Do Not Have Net Directional Exposure To Emerging Markets	5	41.7
   Total	12	100.0

6. Separately managed accounts established with investment advisers

   	Number of Respondents	Percent
   Most Clients Are Net Long	1	7.7
   More Clients Are Net Long Than Net Short	2	15.4
   Roughly Equal Proportions Of Clients Are Net Long And Net Short	6	46.2
   More Clients Are Net Short Than Net Long	0	0.0
   Most Clients Are Net Short	0	0.0
   Most Clients Do Not Have Net Directional Exposure To Emerging Markets	4	30.8
   Total	13	100.0

7. Nonfinancial corporations

   	Number of Respondents	Percent
   Most Clients Are Net Long	1	10.0
   More Clients Are Net Long Than Net Short	0	0.0
   Roughly Equal Proportions Of Clients Are Net Long And Net Short	3	30.0
   More Clients Are Net Short Than Net Long	0	0.0
   Most Clients Are Net Short	1	10.0
   Most Clients Do Not Have Net Directional Exposure To Emerging Markets	5	50.0
   Total	10	100.0

 

83. Since the beginning of 2018, how have your clients of each type changed their net positioning with respect to emerging markets?

 

1. Hedge funds

   	Number of Respondents	Percent
   Most Clients Have Increased Long Positions And/or Decreased Short Positions	0	0.0
   More Clients Have Increased Long Positions And/or Decreased Short Positions Than The Reverse	1	6.3
   Clients That Have Increased Long Positions And/or Decreased Short Positions Are In Roughly Equal Proportion To Those That Have Increased Short Positions And/or Decreased Long Positions	1	6.3
   More Clients Have Increased Short Positions And/or Decreased Long Positions Than The Reverse	6	37.5
   Most clients have increased short positions and/or decreased long positions	6	37.5
   No significant change in exposure	2	12.5
   Total	16	100.0

2. Exchange-traded products

   	Number of Respondents	Percent
   Most Clients Have Increased Long Positions And/or Decreased Short Positions	1	7.7
   More Clients Have Increased Long Positions And/or Decreased Short Positions Than The Reverse	1	7.7
   Clients That Have Increased Long Positions And/or Decreased Short Positions Are In Roughly Equal Proportion To Those That Have Increased Short Positions And/or Decreased Long Positions	2	15.4
   More Clients Have Increased Short Positions And/or Decreased Long Positions Than The Reverse	2	15.4
   Most clients have increased short positions and/or decreased long positions	2	15.4
   No significant change in exposure	5	38.5
   Total	13	100.0

3. Mutual funds

   	Number of Respondents	Percent
   Most Clients Have Increased Long Positions And/or Decreased Short Positions	1	7.1
   More Clients Have Increased Long Positions And/or Decreased Short Positions Than The Reverse	1	7.1
   Clients That Have Increased Long Positions And/or Decreased Short Positions Are In Roughly Equal Proportion To Those That Have Increased Short Positions And/or Decreased Long Positions	1	7.1
   More Clients Have Increased Short Positions And/or Decreased Long Positions Than The Reverse	3	21.4
   Most clients have increased short positions and/or decreased long positions	2	14.3
   No significant change in exposure	6	42.9
   Total	14	100.0

4. Pension plans and endowments

   	Number of Respondents	Percent
   Most Clients Have Increased Long Positions And/or Decreased Short Positions	1	7.1
   More Clients Have Increased Long Positions And/or Decreased Short Positions Than The Reverse	1	7.1
   Clients That Have Increased Long Positions And/or Decreased Short Positions Are In Roughly Equal Proportion To Those That Have Increased Short Positions And/or Decreased Long Positions	1	7.1
   More Clients Have Increased Short Positions And/or Decreased Long Positions Than The Reverse	2	14.3
   Most clients have increased short positions and/or decreased long positions	3	21.4
   No significant change in exposure	6	42.9
   Total	14	100.0

5. Insurance companies

   	Number of Respondents	Percent
   Most Clients Have Increased Long Positions And/or Decreased Short Positions	1	7.7
   More Clients Have Increased Long Positions And/or Decreased Short Positions Than The Reverse	0	0.0
   Clients That Have Increased Long Positions And/or Decreased Short Positions Are In Roughly Equal Proportion To Those That Have Increased Short Positions And/or Decreased Long Positions	3	23.1
   More Clients Have Increased Short Positions And/or Decreased Long Positions Than The Reverse	0	0.0
   Most clients have increased short positions and/or decreased long positions	2	15.4
   No significant change in exposure	7	53.8
   Total	13	100.0

6. Separately managed accounts established with investment advisers

   	Number of Respondents	Percent
   Most Clients Have Increased Long Positions And/or Decreased Short Positions	1	7.1
   More Clients Have Increased Long Positions And/or Decreased Short Positions Than The Reverse	0	0.0
   Clients That Have Increased Long Positions And/or Decreased Short Positions Are In Roughly Equal Proportion To Those That Have Increased Short Positions And/or Decreased Long Positions	3	21.4
   More Clients Have Increased Short Positions And/or Decreased Long Positions Than The Reverse	3	21.4
   Most clients have increased short positions and/or decreased long positions	3	21.4
   No significant change in exposure	4	28.6
   Total	14	100.0

7. Nonfinancial corporations

   	Number of Respondents	Percent
   Most Clients Have Increased Long Positions And/or Decreased Short Positions	0	0.0
   More Clients Have Increased Long Positions And/or Decreased Short Positions Than The Reverse	0	0.0
   Clients That Have Increased Long Positions And/or Decreased Short Positions Are In Roughly Equal Proportion To Those That Have Increased Short Positions And/or Decreased Long Positions	1	9.1
   More Clients Have Increased Short Positions And/or Decreased Long Positions Than The Reverse	1	9.1
   Most clients have increased short positions and/or decreased long positions	2	18.2
   No significant change in exposure	7	63.6
   Total	11	100.0

 

84. How does your institution manage counterparty exposure to clients who are net-long in emerging market assets?

 

1. Collection of initial and variation margin

   	Number of Respondents	Percent
   Most important factor	15	93.8
   2nd most important factor	1	6.3
   3rd most important factor	0	0.0
   Total	16	100.0

2. Limits on long–short gross notional exposure

   	Number of Respondents	Percent
   Most important factor	1	9.1
   2nd most important factor	8	72.7
   3rd most important factor	2	18.2
   Total	11	100.0

3. Client net financing balances held in prime brokerage

   	Number of Respondents	Percent
   Most important factor	0	0.0
   2nd most important factor	4	44.4
   3rd most important factor	5	55.6
   Total	9	100.0

4. Client assets held in custody

   	Number of Respondents	Percent
   Most important factor	0	Undefined
   2nd most important factor	0	Undefined
   3rd most important factor	0	Undefined
   Total	0	Undefined

5. Other (please specify)

   	Number of Respondents	Percent
   Most important factor	0	0.0
   2nd most important factor	1	50.0
   3rd most important factor	1	50.0
   Total	2	100.0

6. Not applicable (that is, your institution has few or no clients of the specified type)

   	Number of Respondents	Percent
   Most important factor	7	100.0
   2nd most important factor	0	0.0
   3rd most important factor	0	0.0
   Total	7	100.0

 

85. Considering the entire range of transactions facilitated by your institution for clients, how has the recent turmoil in emerging markets affected the amount of funding your institution makes available to clients?

 

 

86. How has the recent turmoil in emerging markets affected price terms on credit extended to clients who have significant emerging market exposure?

 

1. Hedge funds

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	5	29.4
   Remained Basically Unchanged	12	70.6
   Eased Somewhat	0	0.0
   Eased Considerably	0	0.0
   Total	17	100.0

2. Mutual funds, ETFs, pension plans, and endowments

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	2	12.5
   Remained Basically Unchanged	14	87.5
   Eased Somewhat	0	0.0
   Eased Considerably	0	0.0
   Total	16	100.0

3. Insurance companies

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	2	15.4
   Remained Basically Unchanged	11	84.6
   Eased Somewhat	0	0.0
   Eased Considerably	0	0.0
   Total	13	100.0

4. Separately managed accounts established with investment advisers

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	3	18.8
   Remained Basically Unchanged	13	81.3
   Eased Somewhat	0	0.0
   Eased Considerably	0	0.0
   Total	16	100.0

5. Nonfinancial corporates

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	3	18.8
   Remained Basically Unchanged	13	81.3
   Eased Somewhat	0	0.0
   Eased Considerably	0	0.0
   Total	16	100.0

 

87. How has the recent turmoil in emerging markets affected nonprice terms on credit extended to clients who have significant emerging market exposure?

 

1. Hedge funds

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	6	35.3
   Remained Basically Unchanged	11	64.7
   Eased Somewhat	0	0.0
   Eased Considerably	0	0.0
   Total	17	100.0

2. Mutual funds, ETFs, pension plans, and endowments

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	2	13.3
   Remained Basically Unchanged	12	80.0
   Eased Somewhat	1	6.7
   Eased Considerably	0	0.0
   Total	15	100.0

3. Insurance companies

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	2	15.4
   Remained Basically Unchanged	10	76.9
   Eased Somewhat	1	7.7
   Eased Considerably	0	0.0
   Total	13	100.0

4. Separately managed accounts established with investment advisers

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	4	23.5
   Remained Basically Unchanged	12	70.6
   Eased Somewhat	1	5.9
   Eased Considerably	0	0.0
   Total	17	100.0

5. Nonfinancial corporates

   	Number of Respondents	Percent
   Tightened Considerably	0	0.0
   Tightened Somewhat	3	18.8
   Remained Basically Unchanged	13	81.3
   Eased Somewhat	0	0.0
   Eased Considerably	0	0.0
   Total	16	100.0

 

1. The following special questions are intended to provide better context for interpreting the core set of questions in the previous section, which focus on changes in credit terms over the preceding three months. Unlike the core questions, these special questions will not be included in the survey on an ongoing basis. Return to text