Wall Street’s largest securities dealers eased credit terms during the second quarter for hedge funds and private-equity firms that borrow against securities and trade over-the-counter derivatives, according to the results of a Federal Reserve Board survey issued Tuesday.

Dealers — which include a mixture of banking and nonbanking firms — said they had granted hedge funds, private-equity firms, and other similar private pools of capital “somewhat more favorable terms” over the past three months. Among the reasons they cited were  “more aggressive competition” as well as an improvement in the financial strength of counterparties.

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