US banks held record $78bn in equity collateral before market crash

Stocks made up 11% of dealers’ OTC derivatives collateral at end-2024 – highest ever reported

At the end of last year, more than one in every 10 dollars of collateral posted to US dealers on over-the-counter derivatives was in the form of equities – a record share, just three months before markets tanked in the wake of sweeping tariffs announced by the Trump administration.

Derivatives counterparties to the eight US banks that disclosed this type of collateral – seven systemic banks and Truist – had posted $78.3 billion in equities as of December 31, the latest date with available data