62) Over the Past Three Months, How Have the Terms Under Which Agency RMBS Are Funded Changed?| A. Terms for Average Clients | 3. Haircuts. | Answer Type: Tightened Somewhat
SFQ62A3TSNR • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.00
Year-over-Year Change
N/A%
Date Range
10/1/2011 - 4/1/2025
Summary
This economic indicator tracks changes in funding terms for Agency Residential Mortgage-Backed Securities (RMBS), specifically focusing on haircuts applied to average clients. The trend provides insights into lending conditions and risk perception in the mortgage securities market.
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
Haircuts represent the percentage discount applied to collateral when securities are used in financing transactions, reflecting perceived risk and market liquidity. Economists use this metric to understand tightening or loosening of credit conditions in the mortgage-backed securities market.
Methodology
Data is collected through surveys and market observations of financial institutions and tracked by the Federal Reserve.
Historical Context
This indicator helps policymakers and investors assess credit market conditions and potential shifts in mortgage lending risk.
Key Facts
- Haircuts indicate the level of risk perceived in mortgage-backed securities
- Tightening suggests increased caution in the lending market
- Reflects broader trends in credit availability and financial market conditions
FAQs
Q: What does a 'haircut' mean in mortgage securities?
A: A haircut is a discount applied to the market value of an asset used as collateral, representing the potential risk of the security.
Q: Why do haircuts change?
A: Haircuts fluctuate based on market conditions, perceived risk, and overall economic stability in the financial sector.
Q: How often is this data updated?
A: The Federal Reserve typically updates this indicator quarterly, providing a snapshot of recent market conditions.
Q: What does 'tightened somewhat' indicate?
A: It suggests a moderate increase in risk management and a slightly more conservative approach to funding mortgage-backed securities.
Q: Who uses this economic indicator?
A: Investors, financial analysts, policymakers, and economists use this data to understand credit market dynamics and risk perception.
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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?| A. Possible Reasons for Tightening | 5. Diminished Availability of Balance Sheet or Capital at Your Institution. | Answer Type: First in Importance
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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 Considerably
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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?| A. Possible Reasons for Tightening | 1. Deterioration in Current or Expected Financial Strength of Counterparties. | Answer Type: 2nd Most Important
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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 | 1. Maximum Amount of Funding. | Answer Type: Eased Somewhat
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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?| B. Possible Reasons for Easing | 3. Adoption of Less-Stringent Market Conventions (That Is, Collateral Terms and Agreements, ISDA Protocols). | Answer Type: 2nd Most Important
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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 | 4. Higher Internal Treasury Charges for Funding. | Answer Type: First in Importance
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Citation
U.S. Federal Reserve, 62) Over the Past Three Months, How Have the Terms Under Which Agency RMBS Are Funded Changed?| A. Terms for Average Clients | 3. Haircuts. | Answer Type: Tightened Somewhat [SFQ62A3TSNR], retrieved from FRED.
Last Checked: 8/1/2025