International derivatives marketplace CME Group today announced that its interest rate complex will expand in summer 2024 with the launch of U.S. Corporate Bond Index futures, pending regulatory review.
The new futures contracts will be based on the Bloomberg U.S. Corporate Index, which measures the performance of investment grade corporate bonds, and the Bloomberg U.S. High Yield Very Liquid Index, which is designed to measure a liquid, diversified component of the high yield corporate bond market.
“As corporate debt issuance continues to increase across sectors, market participants are looking for tools to help them navigate growing credit exposure,” said Agha Mirza, CME Group Global Head of Rates and OTC Products. “Our new U.S. Corporate Bond Index futures will bring clients the speed and precision they need to manage risk and pursue opportunities in the market, while gaining capital efficiencies through portfolio margining.”
“Bloomberg Indices is proud to be at the forefront of advancing the evolution of credit markets and we’re excited to be working 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 on the Bloomberg U.S. Corporate Bond Indices is intended to provide investors with the ability to more accurately and efficiently gain exposure to the corporate bond market and hedge their credit risk.”
Available to trade on CME Globex and eligible for submission to clearing via CME ClearPort, U.S. Corporate Bond Index futures will be listed with, and subject to, the rules of a Designated Contract Market at CME Group. These contracts will also receive automatic margin offsets against existing CME Group Interest Rate and Equity Index futures upon launch.