CME Group announced the first day of trading in High Yield Duration-Hedged Credit futures, its fourth contract based on Bloomberg corporate bond indexes. This new product enables investors to manage credit exposure with greater precision. It addresses the growing demand for fixed income hedging tools in an uncertain environment.
Agha Mirza, CME Group Global Head of Rates and OTC Products, highlighted the latest milestone of 275,000 credit futures contracts traded since last June. CME Group credit futures are the first futures contracts to help market participants manage duration risk through an intercommodity spread with U.S. Treasury futures. This offers unique hedging capabilities.
Clients can receive automatic margin offsets against CME Group's Interest Rate and Equity Index futures, as part of its $60 billion in unparalleled capital efficiencies delivered daily across asset classes. In March, open interest in CME Group credit futures reached a record 3,200 contracts, representing $320 million in notional value. These futures are available to trade on CME Globex and eligible for submission to clearing via CME ClearPort.
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