End-users shun ‘broken’ US swap market
Negative swap spreads have disrupted the hedging strategies of asset managers, corporates and pension funds. Many are now shunning the swap market and looking for alternatives
As 2015 drew to a close, corporate treasurers from 20 Fortune 500 companies gathered to discuss their respective hedging strategies.
"How many of you are outside your fixed rate tolerances?" Amol Dhargalkar, head of the global corporate sector practice at Chatham Financial, asked the group. All raised their hands. "So how many of you are going to floating?" Not one reached for the sky.
Corporate
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Markets
How US dealers flipped the script in OTC trading
Dealer Rankings 2026: After years of creeping specialisation, buy-side filings show top US houses expanding across the board, and squeezing European rivals
Cuts and points – how the Dealer Rankings work
Dealer Rankings 2026: We have a simple way to compare dealers. Sort of simple, anyway
EU eases non-cleared margin rules for smaller players
New proposals aim to cut compliance and reporting requirements for phase five and six firms
Perps extend the menu to tempt TradFi diners
Expiry-less futures are spreading from bitcoin into gold, equities and FX. Institutions are watching, not buying
BoE backs away from mandatory gilt clearing
Discussions with industry shift to portfolio-based repo haircuts and ways to encourage voluntary clearing
NatWest bridges FXPB and clearing for regional banks
New model maintains traditional OTC market access with added direct clearing option
SEC gunning to take over Cat in 2027
Regulator's bid for control of market surveillance apparatus splits industry participants
Banks join forces for stablecoin builds
Three regional consortia gain traction; SG and Standard Chartered stay on solo track
