Record $95bn in equities sits with US banks as OTC margin
Stocks on par with US Treasuries in top dealers’ collateral trove
US systemic dealers held a record $95 billion of over-the-counter derivatives collateral in the form of equities as of end-September – making them as common a margin choice as US Treasuries, despite repeated stock market swoons.
Clients of the six largest US banks posted equities for 12% of the $790.2 billion in collateral securing OTC contracts – only slightly below the 12.4%, or $97.7 billion
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