CME Group, the world's leading derivatives market, said it will expand its interest rate complex with the launch of U.S. corporate bond index futures in summer 2024, pending regulatory review.
The new futures contracts are 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 intended to measure a liquid, diversified component of the high-yield corporate bond market.
“As corporate bond issuance continues to increase across industries, market participants are looking for tools to help them manage growing credit risk,” said Agha Mirza, Global Head of Rates and OTC Products at CME Group. “Our new U.S. corporate bond index futures offer clients the speed and precision they need to manage risk and pursue market opportunities, while achieving capital efficiency through portfolio margining.”
“Bloomberg Indices is proud to be at the forefront of driving the evolution of credit markets and we are pleased 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 introduction of listed futures on the Bloomberg US Corporate Bond Indices is intended to give investors the opportunity to participate in the corporate bond market more accurately and efficiently and to hedge their credit risk.”
The US Corporate Bond Index Futures are available for trading on CME Globex and can be submitted for clearing via CME ClearPort. They will be listed with and subject to the rules of a Designated Contract Market with CME Group. These contracts will also be automatically margin-aligned with CME Group's existing interest rate and equity index futures upon launch.
Source: CME
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