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?| A. Initial Margin Requirements for Average Clients. | Answer Type: Increased Considerably
ALLQ45AICNR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.00
Year-over-Year Change
N/A%
Date Range
10/1/2011 - 1/1/2025
Summary
Tracks changes in initial margin requirements for OTC credit derivatives referencing corporate entities. Provides critical insights into institutional risk management strategies.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This trend measures how financial institutions adjust initial margin requirements for corporate credit derivatives. It reflects risk perception and market conditions.
Methodology
Survey-based data collection from financial institutions about margin requirement changes.
Historical Context
Used by regulators and risk managers to understand derivative market dynamics.
Key Facts
- Reflects institutional risk management strategies
- Indicates changes in corporate credit market perception
- Important for understanding derivative market conditions
FAQs
Q: What do increased margin requirements mean?
A: Higher margin requirements suggest increased perceived risk in corporate credit derivatives. Institutions are demanding more collateral to protect against potential losses.
Q: Why do margin requirements change?
A: Changes reflect market volatility, credit risk perceptions, and overall economic conditions.
Q: How do margin requirements impact markets?
A: They directly influence trading volumes and cost of derivative transactions. Higher margins can reduce market liquidity.
Q: Who monitors these changes?
A: Financial regulators, risk managers, and institutional investors closely track margin requirement trends.
Q: What does 'increased considerably' indicate?
A: Significant rise in margin requirements, suggesting heightened perceived risk in corporate credit markets.
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Citation
U.S. Federal Reserve, OTC Credit Derivatives Margin Requirements (ALLQ45AICNR), retrieved from FRED.