Results of the September 2026 survey on credit terms in euro-denominated securities and OTC derivatives markets

The September 2026 SESFOD survey indicates that credit terms and conditions eased slightly for all counterparty types for the fourth consecutive quarter, mainly through price terms.

Demand for securities financing increased for equities and most collateral types, with financing rates/spreads rising, especially for most-favoured clients. Haircuts decreased for most bond collateral types, while the maximum funding amount and maturity increased for some collateral types.

Initial margins declined slightly for several non-centrally cleared OTC derivative types, while valuation disputes increased for foreign exchange and credit derivatives.

The survey was conducted during a period of market uncertainty linked to the Middle East conflict and volatile energy prices. The ECB raised its key interest rates by 25 basis points in June and held them steady in July. From June to August 2026, overall credit terms eased slightly, extending previous trends. Respondents expect a further slight easing over the next three months.

Hedge funds increased leverage slightly. Market liquidity and functioning deteriorated slightly for equities and some corporate bonds, while collateral valuation disputes remained unchanged. Data and detailed results are available on the ECB website and Data Portal.

The survey covers responses from 26 large banks, including 14 euro area banks and 12 outside the euro area, and is conducted four times annually, covering changes over three-month periods ending in February, May, August, and November.