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?| Answer Type: Tightened Somewhat
CTQ05TSNR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
4.00
Year-over-Year Change
0.00%
Date Range
7/1/2011 - 4/1/2025
Summary
This economic indicator tracks changes in nonprice terms for securities financing and derivatives transactions with hedge funds over a three-month period. It provides insight into risk management practices and financial market sentiment among institutional lenders.
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 are adjusting documentation and structural terms in complex financial transactions beyond simple pricing. Economists interpret these shifts as potential signals of perceived counterparty risk or market uncertainty.
Methodology
Data is collected through survey responses from financial institutions participating in securities and derivatives markets.
Historical Context
Policymakers and regulators use this trend to assess systemic financial risk and potential market stress indicators.
Key Facts
- Tracks nonprice terms in financial transactions with hedge funds
- Indicates potential changes in institutional risk perception
- Provides insights into market sentiment beyond direct pricing
FAQs
Q: What are nonprice terms in financial transactions?
A: Nonprice terms include contractual provisions like haircuts, maturity limits, covenants, and default provisions that manage transaction risk beyond simple pricing.
Q: Why do changes in these terms matter?
A: Shifts in nonprice terms can signal changing risk assessments and market confidence among financial institutions.
Q: How frequently is this data updated?
A: The trend is typically measured on a quarterly basis, providing periodic snapshots of market conditions.
Q: Who uses this economic indicator?
A: Regulators, risk managers, financial analysts, and policymakers use this data to understand market dynamics and potential systemic risks.
Q: What does 'tightened somewhat' indicate?
A: It suggests financial institutions are incrementally becoming more cautious in their transaction terms with hedge funds.
Related Trends
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?| B. Possible Reasons for Easing | 1. Improvement in Current or Expected Financial Strength of Counterparties. | Answer Type: 2nd Most Important
CTQ19B12MINR
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?| Answer Type: Decreased Somewhat
ALLQ54DSNR
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?| B. Interest Rate. | Answer Type: Remained Basically Unchanged
OTCDQ50BRBUNR
56) Over the Past Three Months, How Have the Terms Under Which High-Yield Corporate Bonds Are Funded Changed?| B. Terms for Most Favored Clients, as a Consequence of Breadth, Duration And/or Extent of Relationship | 3. Haircuts. | Answer Type: Eased Considerably
ALLQ56B3ECNR
66) Over the Past Three Months, How Have the Terms Under Which Non-Agency Rmbs Are Funded Changed?| A. Terms for Average Clients | 3. Haircuts. | Answer Type: Eased Considerably
ALLQ66A3ECNR
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?| A. Possible Reasons for Tightening | 3. Adoption of More-Stringent Market Conventions (That is, Collateral Terms and Agreements, Isda Protocols). | Answer Type: First in Importance
ALLQ31A3MINR
Citation
U.S. Federal Reserve, 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?| Answer Type: Tightened Somewhat [CTQ05TSNR], retrieved from FRED.
Last Checked: 8/1/2025