International derivatives market CME Group announced today that its interest rate pool will expand in the summer of 2024 with the launch of US corporate bond index futures, pending regulatory review.
The new futures contracts will be based on the Bloomberg US Corporate Index, which measures the performance of investment-grade corporate bonds, and the Bloomberg US High Yield Very Liquid Index, which is designed to measure a liquid, diversified component of the high-yield corporate bond. performance. Buy.
“As corporate debt issuance continues to increase across the board, market participants are looking for tools to help them navigate increasing credit exposure,” said Agha Mirza, head of CME Group Global Rates and OTC Products. “Our new US corporate bond index futures will give clients the speed and accuracy they need to manage risk and seek market opportunities while earning capital efficiency through portfolio margin.”
“Bloomberg Indices is proud to be at the forefront of the evolution of credit markets and we are excited to partner with CME Group to bring this new offering to market,” said Umesh Gajria, Global Head of Index Linked Products, Bloomberg Index . Services Limited. “The launch of listed futures contracts on the Bloomberg US Corporate Bond Indices is intended to provide investors with the ability to gain more accurate and efficient exposure to the corporate bond market and to hedge their credit risk.”
Available for trading on CME Globex and eligible for submission to clearing through CME ClearPort, US Corporate Bond Index futures will be quoted and subject to the rules of a designated contract market on the CME Group. These contracts will also receive automatic margin hedges against CME Group’s existing interest rate and equity index futures contracts at launch.