Bond fund managers utilize derivatives market to invest excess cash, lowering default protection costs and easing "maturity wall" concerns.
Bond fund managers increasingly use the derivatives market to invest their excess cash, driving down default protection costs. Credit investors flush with cash buy new debt, easing concerns of a "maturity wall." Money managers employ credit derivatives indexes like Markit CDX to gain credit risk exposure, reflecting optimism in the market.
March 16, 2024
3 Articles