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Capital Group spearheads mutual fund trim of IR swaps books

Counterparty Radar: Manager cut 70% of its position in Q3 as space shed roughly $174 billion in holdings

Funds-trim-interest-rate-swaps-books

Capital Group drastically cut the notional value of its book in the third quarter of 2022 as US mutual funds and exchange-traded funds (ETFs) shrank their swap holdings by more than one-fifth compared to Q2.

The Los Angeles-based manager pared back its swaps book by 70% to $58 billion following the expiration of a series of mega-trades based on the fed funds benchmark. Capital Group’s swaps

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