Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)

The September 2026 SESFOD survey covered a period of uncertainty linked to the conflict in the Middle East and volatile energy prices. The European Central Bank (ECB) raised its key interest rates by 25 basis points in June and held them unchanged in July. In the survey review period from June to August 2026, overall credit terms and conditions eased slightly for all counterparty types, extending the easing recorded in the previous three survey rounds. The change was mainly in price terms; non-price terms eased slightly for banks and dealers, tightened slightly for hedge funds and were unchanged for the other counterparty types. A small number of respondents cited general market liquidity and functioning, competition from other institutions and counterparty financial strength as reasons for easier price terms. Respondents expected a further slight overall easing for all counterparty types over the following three months (Chart 1). Hedge funds’ use of leverage increased slightly. The volume and the duration and persistence of counterparty valuation disputes were unchanged.

Expected and realised quarterly changes in overall credit terms and price/non-price terms offered to counterparties across all transaction types

Note: Net percentages are calculated as the difference between the percentage of respondents reporting “tightened somewhat” or “tightened considerably” and the percentage reporting “eased somewhat” or “eased considerably”.