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?| B. Terms for Most Favored Clients, as a Consequence of Breadth, Duration And/or Extent of Relationship | 3. Haircuts. | Answer Type: Tightened Somewhat
ALLQ74B3TSNR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.00
Year-over-Year Change
N/A%
Date Range
10/1/2011 - 1/1/2025
Summary
This economic indicator tracks changes in funding terms for consumer asset-backed securities over three-month periods. It provides insights into credit market conditions and lending standards for most favored clients.
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
The trend measures how financial institutions adjust haircuts and funding terms for complex financial instruments like credit card and auto loan receivables. Economists use this metric to assess credit market tightness and potential shifts in lending risk perception.
Methodology
Data is collected through Federal Reserve surveys of financial institutions, capturing qualitative changes in lending and securitization practices.
Historical Context
This indicator helps policymakers and investors understand evolving credit market dynamics and potential economic stress signals.
Key Facts
- Tracks three-month changes in funding terms for consumer asset-backed securities
- Focuses on terms for most favored financial clients
- Provides insights into potential credit market tightening
FAQs
Q: What does 'haircut' mean in this financial context?
A: In financial terms, a haircut represents the difference between the market value of an asset and the value assigned when used as collateral. It reflects the perceived risk of the underlying asset.
Q: Why are consumer asset-backed securities important?
A: These securities are crucial for financial liquidity, allowing banks to package and sell loans, which frees up capital for additional lending and supports broader economic activity.
Q: How frequently is this data updated?
A: The Federal Reserve typically updates this indicator quarterly, providing a snapshot of evolving credit market conditions.
Q: What might cause terms to tighten?
A: Economic uncertainty, increased default risks, or changes in monetary policy can lead financial institutions to tighten lending terms and increase haircuts.
Q: How do investors use this information?
A: Investors analyze these trends to assess credit market health, potential economic shifts, and make informed decisions about financial investments.
Related Trends
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?| B. Possible Reasons for Easing | 2. Increased Willingness of Your Institution to Take on Risk. | Answer Type: 2nd Most Important
ALLQ37B22MINR
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?| A. Terms for Average Clients | 2. Maximum Maturity. | Answer Type: Tightened Considerably
SFQ74A2TCNR
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?| G. Nonfinancial Corporations. | Answer Type: Remained Basically Unchanged
ALLQ40GRBUNR
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?| Answer Type: Remained Basically Unchanged
ALLQ12RBUNR
47) Over the Past Three Months, How Have Initial Margin Requirements Set by Your Institution with Respect to OTC Commodity Derivatives Changed?| A. Initial Margin Requirements for Average Clients. | Answer Type: Decreased Somewhat
OTCDQ47ADSNR
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?| B. Possible Reasons for Easing | 5. Increased Availability of Balance Sheet or Capital at Your Institution. | Answer Type: 2nd Most Important
CTQ13B52MINR
Citation
U.S. Federal Reserve, 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?| B. Terms for Most Favored Clients, as a Consequence of Breadth, Duration And/or Extent of Relationship | 3. Haircuts. | Answer Type: Tightened Somewhat [ALLQ74B3TSNR], retrieved from FRED.
Last Checked: 8/1/2025