ECB survey points to steady derivative-market funding costs
FRANKFURT, July 10
FRANKFURT, July 10 (Reuters) - Credit costs for securities financing and derivatives transactions were little changed in the three months to the end of May, a European Central Bank survey released on Thursday showed.
The ECB's June survey of credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets showed that:
* Price terms remained almost unchanged for most counter-party types except hedge funds.
* Non-price credit terms eased for banks, dealers and hedge funds, but on balance remained basically unchanged for other counterparty types.
* Credit terms for funding that is collateralised by euro-denominated securities eased further for many types of collateral, albeit to a lesser extent than during the previous reference period.
"The survey suggests that, across the entire range of securities financing and over-the-counter derivatives transactions, offered price terms (such as financing rates/spreads) on balance remained almost unchanged over the three-month reference period ending in May 2014," the ECB said in a statement.
To revive a sluggish euro zone, the ECB cut interest rates to record lows in June and introduced a series of measures to pump money into the economy.
The ECB survey collected information on changes between March 2014 and May 2014. The results are based on responses from a panel of 28 large banks, comprising 13 euro area banks and 15 banks with head offices outside the euro area.
(Writing by Paul Carrel; Editing by Larry King)