28 January 2026

• Credit terms and conditions were expected to tighten in the first quarter of 2026, for all counterparty types but especially for hedge funds.
• In tandem with a broad-based rise in demand for funding, financing rates increased noticeably across nearly all types of collateral.
• Compared with last year, respondents’ ability to act as a market-maker in times of stress increased for derivatives, but decreased for debt, asset-backed, and convertible securities.
• Price and non-price credit terms and conditions remained largely unchanged between September 2025 and December 2025, with a slight easing of price terms across most counterparties. This easing appeared to be primarily driven by general market liquidity conditions, competition from other institutions, and the financial strength of counterparties. Looking ahead to the first quarter of 2026, some tightening of credit terms was expected across the board, but in particular for hedge funds. Tightening expectations were…