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

Overall credit terms and conditions eased slightly between December 2025 and February 2026 across most counterparty types, despite the expected tightening of conditions recorded in the previous survey. The easing reported in net terms stemmed primarily from terms and conditions for banks and dealers. Price terms eased across all counterparties except hedge funds. Non-price terms eased slightly for banks and dealers but were unchanged for all other counterparty types. General market liquidity conditions were reported as the main driver of easing, followed by competition from other institutions and the financial strength of counterparties. Survey respondents expected funding conditions to ease again slightly in the three months ahead, i.e. from March to May 2026 (Chart 1). Few changes were reported in net terms in relation to concentrated credit exposures, leverage, client pressure, differential terms or valuation disputes.