Results of June 2026 survey on credit terms in euro-denominated securities and OTC markets

The European Central Bank (ECB) released the results of the June 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD). The survey indicates a slight net easing of credit terms for all counterparty types for a second consecutive quarter.

Market volatility from March to May 2026, driven by Middle East conflict and oil supply shocks, affected risk sentiment. Despite this, credit terms proved broadly resilient, with easing driven solely by price terms, while non-price terms remained stable.

In securities financing markets, financing rates/spreads increased across all collateral types, notably for asset-backed securities (31% of respondents), high-yield corporate bonds, and domestic government bonds (29% each). Funding demand grew, especially for equities (33%), with dealers adjusting funding availability and maturity accordingly. Market liquidity and functioning showed slight deterioration for equities and bonds, with an increase in collateral valuation disputes.

In OTC derivatives markets, initial margin requirements increased slightly for most derivatives, especially interest rate derivatives. Liquidity and trading conditions deteriorated marginally for foreign exchange, equity, and commodity derivatives. The volume of valuation disputes increased for several derivative types, particularly equity derivatives, with a slight rise in maximum exposure for interest rate, credit, and equity derivatives.

The full survey results, detailed breakdowns, and comparisons are available on the ECB website, along with the underlying data series on the ECB Data Portal. The SESFOD survey is conducted quarterly, covering changes over three-month periods ending in February, May, August, and November. The June 2026 survey focused on changes from March to May 2026, based on responses from 26 large banks, including 14 euro area banks and 12 outside the euro area.