Client Financing Drove Two-Thirds of Large Dealers’ Issuance-Day Balance-Sheet Growth
Photo: TokenPost
A Federal Reserve Board staff study found client financing accounted for about two-thirds of large dealers’ issuance-day balance-sheet growth, quantifying how Treasury auctions affect market intermediaries. The Federal Reserve Board published the staff note, titled “Treasury Issuance and Dealer Balance Sheets,” on Oct. 30. It examined daily data from Jan. 1, 2016, through June 30, 2025, for the eight largest dealers affiliated with global systemically important banks. On issuance dates, dealer balance sheets grew by about 21 cents for every $1 of Treasury coupon securities issued.
Source: TokenPost
