Results of the June 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets (SESFOD)

PRESS RELEASE

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Provider: 
ECBECB
URL: 
https://www.ecb.europa.eu//press/pr/date/2020/html/ecb.pr200821~0b5232b195.en.htmlhttps://www.ecb.europa.eu//press/pr/date/2020/html/ecb.pr200821~0b5232b195.en.html
Retrieved on: 
Saturday, August 22, 2020
Information
Tags: 
Finance, Money, Economy, Financial markets, Hedge fund, Over-the-counter, Derivative, Short, Repurchase agreement, Credit risk, Asset and liability management
Summary
Key Points: 
  • PRESS RELEASE

    Results of the June 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets (SESFOD)

    21 August 2020

    Survey respondents reported the most widespread tightening of credit terms and conditions over a three-month review period since the SESFOD was launched in 2013.

  • For the March 2020 to May 2020 review period, their respective institutions offered less-favourable price and non-price credit terms for all counterparty types.
  • For price terms, non-financial corporations were the most affected counterparty type, while for non-price terms the tightening of conditions was most noticeable for hedge funds.
  • Survey respondents reported that their clients predominantly covered liquidity needs resulting from margin calls by tapping repo markets or credit lines.
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