Survey respondents report slight net easing in credit terms amid heightened volatility and rising policy rate expectations in Q2 2026.
Credit terms and conditions for euro-denominated securities financing and OTC derivatives markets eased slightly for the second consecutive quarter in June 2026. The easing was driven entirely by price adjustments, particularly for equity collateral, as demand for secured funding increased. Non-price terms remained largely unchanged across counterparties and transaction types, according to survey results released Friday.
The survey period, spanning March to May 2026, was marked by heightened market volatility due to escalating Middle East conflict and an oil supply shock. Commodity prices surged, weighing on risk sentiment in March, though markets rebounded strongly in April and May. Market-implied policy rate expectations rose significantly during this period, yet credit terms demonstrated resilience.
Looking ahead, respondents expect credit terms to remain stable from June to August 2026, with only a minor net percentage anticipating slight tightening in price terms for banks and dealers.