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Reported Oct 7, 2026Quickanomics write-up updated Oct 11, 2026, version 42 min read
Follow the developing storyExpanded original Quickanomics reporting with the source’s material findings, comparisons and qualifications at all three reading depths.
Wholesale credit eased overall, while financing spreads, collateral terms and market showed a more uneven pattern.
Wholesale credit terms eased slightly for the fourth consecutive survey period in the ECB’s June–August survey, with pricing accounting for most of the overall movement. The October 7 release also records differences across counterparties and instruments that complicate the headline.
The SESFOD survey draws on 26 banks: 14 in the euro area and 12 outside the EU. Their answers provide a qualitative assessment of wholesale market conditions, rather than a weighted transaction-volume series or a measure of retail lending rates.
Non-price conditions eased for banks and dealers, tightened for hedge funds and were broadly unchanged for other counterparties. Some respondents cited market , competition and stronger counterparties as influences. They expected further easing during the following quarter, while hedge-fund leverage rose slightly.
The ECB’s June rate increase of 25 basis points and unchanged July setting provide monetary-policy background. Policy rates and survey-reported terms are different measures, however, and the survey should not be reduced to a direct restatement of those decisions.
Demand for securities financing rose across most collateral categories, with equities showing the strongest increase. The equity result of 27 per cent represents the net share of respondents reporting higher demand, rather than the percentage growth in financing volume.
Financing rates and spreads increased for favoured clients across collateral types. For average clients, changes were more limited for government bonds and convertibles. These particular pricing results coexist with the survey’s broader account of modest overall easing across relationships.
Haircuts declined for most bonds and asset-backed securities. A haircut discounts collateral’s market value when determining how much financing it can support; a smaller haircut can make more of that value usable, other conditions being equal. The survey also reports increases in maximum financing amounts or maturities in some categories.
Market and trading conditions deteriorated in equities and corporate bonds, while collateral disputes were broadly unchanged. Financing access, collateral treatment and the ease of trading are therefore separate elements of the report.
Initial margins declined for foreign exchange, , equities and some credit instruments in non-cleared over-the-counter derivatives. Initial margin is collateral supplied against potential exposure when a position is established; the survey reported broadly unchanged exposures and maturities alongside the margin movement.
worsened for equity and commodity derivatives and improved for sovereign-credit derivatives. Valuation disputes increased in foreign-exchange and credit derivatives, while terms for new or renewed master agreements eased slightly.
The account is consequently one of modest aggregate easing with meaningful variation. Respondents’ expectations concern the next quarter, and should remain labelled as expectations rather than realised conditions.
Reports from the same original source are not independent confirmation.
The ECB’s October 7, 2026 SESFOD survey covers June–August and responses from 26 banks, 14 in the euro area and 12 outside the EU; it reports qualitative wholesale financing conditions, not household borrowing rates.
The ECB’s October 7, 2026 SESFOD survey covers June–August and responses from 26 banks, 14 in the euro area and 12 outside the EU; it reports qualitative wholesale financing conditions, not household borrowing rates.European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)
Overall credit terms eased slightly for the fourth consecutive survey period, largely through pricing; non-price terms eased for banks and dealers but tightened for hedge funds and were broadly unchanged for other counterparties.
Overall credit terms eased slightly for the fourth consecutive survey period, largely through pricing; non-price terms eased for banks and dealers but tightened for hedge funds and were broadly unchanged for other counterparties.European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)
Some respondents cited market liquidity, competition and stronger counterparties. They expected further easing next quarter; hedge-fund leverage increased slightly. These are respondent observations and expectations.
Some respondents cited market liquidity, competition and stronger counterparties. They expected further easing next quarter; hedge-fund leverage increased slightly. These are respondent observations and expectations.European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)
Securities-financing demand increased for most collateral types, especially equities, for which 27 per cent was the net share of respondents reporting increased demand, not a 27 per cent rise in transaction volume.
Securities-financing demand increased for most collateral types, especially equities, for which 27 per cent was the net share of respondents reporting increased demand, not a 27 per cent rise in transaction volume.European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)
Financing rates and spreads increased for favoured clients across collateral types; changes for average clients were more limited in government bonds and convertibles. Haircuts declined for most bonds and asset-backed securities, and maximum financing amounts or maturities increased in some categories.
Financing rates and spreads increased for favoured clients across collateral types; changes for average clients were more limited in government bonds and convertibles. Haircuts declined for most bonds and asset-backed securities, and maximum financing amounts or maturities increased in some categories.European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)
Liquidity and trading conditions worsened in equities and corporate bonds, while collateral disputes were broadly unchanged.
Liquidity and trading conditions worsened in equities and corporate bonds, while collateral disputes were broadly unchanged.European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)
For non-cleared OTC derivatives, initial margins declined for foreign exchange, rates, equities and some credit instruments, while exposures and maturities were broadly unchanged. Liquidity worsened in equity and commodity derivatives and improved in sovereign credit derivatives; valuation disputes increased in foreign-exchange and credit derivatives, and master-agreement terms eased slightly.
For non-cleared OTC derivatives, initial margins declined for foreign exchange, rates, equities and some credit instruments, while exposures and maturities were broadly unchanged. Liquidity worsened in equity and commodity derivatives and improved in sovereign credit derivatives; valuation disputes increased in foreign-exchange and credit derivatives, and master-agreement terms eased slightly.European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)
The ECB had raised rates by 25 basis points in June and left them unchanged in July. Those policy decisions are background to the survey, rather than the survey’s own measure of financing terms.
The ECB had raised rates by 25 basis points in June and left them unchanged in July. Those policy decisions are background to the survey, rather than the survey’s own measure of financing terms.European Central Bank: Results of the September 2026 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD)
The survey does not establish household borrowing conditions or a uniform change for every counterparty.
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