The Senior Credit Officer Opinion Survey on Dealer Financing Terms (SCOOS) is a quarterly survey providing information about the availability and terms of credit in securities financing and over-the counter (OTC) derivatives markets.
The SCOOS collects qualitative information on credit terms and conditions in securities financing and OTC derivatives markets, which are important conduits for leverage in the financial system.
With respect to securities financing transactions, respondents indicated the following:
- One-half of respondents reported a tightening of funding terms for average clients with respect to collateral spreads for high-yield corporate bonds, and a similar fraction reported tightening with respect to collateral spreads and haircuts for non-agency RMBS. At least one-fifth of dealers reported a tightening with respect to collateral spreads and haircuts for average clients across all collateral classes except equities.
- Roughly one-fourth of dealers, on net, indicated tightening of funding terms for average clients with respect to the maximum amount and maturity of funding for equities and non-agency RMBS.
- One-third of respondents reported an increase in demand for funding of non-agency RMBS, and roughly one-fifth reported the same for commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS). Additionally, one-fourth reported increased demand for term funding of non-agency RMBS, while a smaller fraction reported increased demand for term funding of agency RMBS. On net, about one-fourth of dealers indicated decreased demand for funding of equities.
- Roughly one-fourth of dealers indicated that liquidity and market functioning deteriorated over the past three months for high-yield corporate bonds, while about one-fifth reported a deterioration for CMBS and ABS. On net, dealers reported that liquidity and market functioning for agency and non-agency RMBS remained basically unchanged.
The survey is directed to senior credit officers responsible for maintaining a consolidated perspective on the management of credit risks.