Fed Senior Credit Officer Opinion Survey on Dealer Financing Terms

Price and nonprice terms on securities financing and OTC derivatives transactions were basically unchanged, on net, across all counterparty types Nearly one-fourth of dealers reported that the intensity of efforts by hedge funds (HFs) to negotiate more favorable price and nonprice terms increased somewhat. Resources and attention devoted to managing concentrated credit exposure to dealers and other financial intermediaries (such as large banking institutions) remained unchanged. Nearly one-half of dealers reported that changes in the practices of central counterparties, including margin requirements and haircuts, affected, to at least a small degree, the credit terms they offer to clients on bilateral transactions that are not cleared. The volume, duration, and persistence of mark and collateral disputes across all counterparty types remained largely unchanged, on net, over the past three months. With respect to clients' use of financial leverage, dealers reported that the use of leverage remained basically unchanged, on net, across all client types