Results of the March 2024 Survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets (SESFOD)

Overall credit terms and conditions eased for most counterparty types between December 2023 and February 2024, an outcome which contrasted with the expectations of further tightening that had been expressed in the December 2023 survey. Price terms eased more than non-price terms overall. Respondents mainly attributed the easing of price terms to an improvement in general market liquidity and improvements in the current or expected financial strength of counterparties. Small net percentages of survey respondents expected price terms to ease further over the period from March to May 2024 and expected non-price terms to tighten again over the same period. A small share of respondents reported that changes to the practices of central counterparties, including as regards margin requirements and haircuts, had contributed somewhat to an easing of price and non-price terms.