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ECB survey finds euro credit terms resilient despite volatility
Financing rates and spreads rose across collateral types, with the biggest increases for asset-backed securities, high-yield corporate bonds, and domestic government bonds.
The ECB said its June 2026 survey of euro-denominated securities financing and OTC derivatives markets covered a period of heightened volatility from March to May 2026.
The central bank linked the rough patch to an oil supply shock tied to escalating conflict in the Middle East, which pushed commodity prices higher and weighed on risk sentiment in March, before markets recovered strongly in April and May.
ECB survey respondents said overall credit terms and conditions proved broadly resilient, with terms easing slightly for all counterparty types for a second consecutive quarter.
The ECB said the easing came only from price terms, while non-price terms were basically unchanged, and respondents expected terms to remain broadly unchanged from June to August 2026.
In securities financing, the ECB reported that financing rates and spreads rose across all collateral types, with significant increases for asset-backed securities, and net 29% of respondents citing increases for both high-yield corporate bonds and domestic government bonds.
At the same time, demand for funding grew across most collateral types, especially funding secured against equities, as dealers reduced maximum funding amounts and maturities for some bond collateral while increasing equity-secured funding.
The ECB also noted slight deterioration in liquidity and collateral-market functioning for equities, high-yield corporate bonds, and high-quality financial corporate bonds, alongside a rise in collateral valuation disputes across collateral types.