The European Central Bank (ECB) published on 7 October 2026 the results of its SESFOD survey covering June to August 2026, revealing a slight easing of credit conditions and euro financing terms for the fourth consecutive quarter.
This relaxation affects all types of counterparties and is mainly reflected in improved pricing conditions. Non-pricing conditions changed slightly depending on counterparty type: they eased for banks and dealers, tightened for hedge funds, and remained stable for other actors.
Demand for secured financing increased, especially for equities, with 27% of respondents reporting a rise. At the same time, funding rates and spreads increased for the highest-rated clients across most collateral types, while haircuts decreased for the majority of bonds and asset-backed securities.
Initial margins slightly declined for several types of centrally uncleared OTC derivatives, although valuation disputes increased for foreign exchange and credit derivatives.
These developments occurred amid uncertainty linked to the Middle East conflict and energy price volatility. The ECB had raised its key interest rates by 25 basis points in June and then kept them unchanged in July.
Survey respondents anticipate a moderate continuation of this easing in credit conditions over the next three months.