The Secured Funding Cliff
Across 1 sector, 2 of 3 filers are signaling falling disclosed risk. Visible since 2025Q3, with activity continuing through 2025Q4. Primarily a capital story (58%), with a risk overlay (42%). Present-tense — companies describing what is happening now. One disclosure notes "Disruptions in secured financing markets for financial institutions have occurred in prior market cycles, which resulted in adverse changes in terms or significant reductions." Continuing to gain pace.
Large financial institutions are actively managing the risk that secured funding—particularly for less liquid asset classes—becomes unavailable or terms deteriorate sharply during market stress, forcing them to hold higher liquid reserves and match funding tenor more carefully to asset maturity.
DISTINCT NEW FILERS PER QUARTER
✦ WHAT THE DIFF CAUGHT
Language shifts from historical disruption risk (BAC backward-looking) and forward mitigation strategy (GS current-state practices) to shared recognition that specific asset classes face compressed funding access in stress scenarios.
REPRESENTATIVE SIGNAL FROM FILINGS
“Disruptions in secured financing markets for financial institutions have occurred in prior market cycles, which resulted in adverse changes in terms or significant reductions”
Secured financing markets have experienced disruptions in prior cycles, resulting in adverse terms or significant reductions in funding availability for financial institutions.
“During a liquidity crisis, credit-sensitive funding, including unsecured debt, certain deposits and some types of secured financing agreements, may be unavailable”
During liquidity crises, unsecured debt, certain deposits, and some secured financing become unavailable or experience unfavorable terms.
DRIVERS