The significance behind $1.8 billion in open interest The significance behind $1.8 billion in open interest

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Disclaimer: The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters. To work with Reuters Plus, contact us here.

The significance behind $1.8 billion in open interest

Corporate bond markets face unprecedented volatility.

Rising rates

Traditional methods that worked for decades fall short in today's market.

Geopolitical tensions

Trading transformation

Cash Bonds

ETFs

TRS and CDX

Suffer liquidity constraints and wide spreads

Require full funding and complex borrowing for shorts.

Need bilateral agreements and ISDA documentation

The numbers tell the story

Asset managers, hedge funds, pension funds, insurance companies and CTAs are turning to credit futures for broad market exposure.

47%

With 47% of volume executed as institutional block trades, investors are broadly adopting credit futures across diverse strategies and market conditions.

CLICK TO EXPLORE WHY

+4.5x

IBHY

growth to $1.2B open interest

+4.4x

IBIG

growth to $598M open interest

Variety of institutional participants, driving enhanced liquidity and market resilience.

The Cboe advantage

Cboe offers two types of exchange-traded credit futures delivering unfunded exposure:

2.5k

Value

1.1k

Number of bonds

Duration (Years)

Yield (%)

IBHY

IBIG

Bond ETF

3.15

7.31

8.39

5.6

Key benefits

Low initial margins versus full ETF funding

97%

Correlation to underlying ETFs

Institutional use cases

Institutions need new solutions to efficiently manage risk.

Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index Futures (IBHY)

Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index Futures (IBIG)

Portfolio overlay

Tactical allocation

Hedging strategies

Arbitrage

Cash management

Yield enhancement

With Cboe, credit futures are available for trading 23 hours a day, 5 days a week, in a centrally cleared and cash-settled environment.

Transforming investing

Cboe credit futures deliver institutional precision in volatile markets. When $1.8 billion in open interest moves to futures, it’s not a trend. It’s a transformation. Learn more here.

Trading in futures and options on futures is not suitable for all market participants and involves the risk of loss, which can be substantial and can exceed the amount of money deposited for a futures or options on futures position. You should, therefore, carefully consider whether trading in futures and options on futures is suitable for you in light of your circumstances and financial resources. You should put at risk only funds that you can afford to lose without affecting your lifestyle. For additional information regarding the risks associated with trading futures and options on futures and with trading security futures, see respectively the Risk Disclosure Statement Referenced in CFTC Letter 16-82 and the Risk Disclosure Statement for Security Futures Contracts. Certain risks associated with options, futures, and options on futures and certain disclosures relating to information provided regarding these products are also highlighted at https://www.cboe.com/us disclaimers . This information is provided for general education and information purposes only. No statement provided should be construed as a recommendation to buy or sell a security, future, option on a future, security future, digital asset, financial instrument, investment fund, or other investment product (collectively, a "financial product"), or to provide investment advice. Cboe®, CFE®, Cboe Futures Exchange®, VIX®, and Cboe Global Markets® are registered trademarks of Cboe Exchange, Inc. All other trademarks and service marks are the property of their respective owners. The iBoxx iShares $ High Yield Corporate Bond Index and the iBoxx iShares $ Investment Grade Corporate Bond Index (“iBoxx iShares $ Corporate Bond Indices”) and the iBoxx® USD Liquid Emerging Market Sovereigns & Sub-Sovereigns Index are products of S&P Dow Jones Indices LLC or its affiliates or licensors (“S&P DJI”) and have been licensed for use by Cboe Exchange, Inc. iBoxx®, S&P®, S&P 500®, SPX®, US 500®, The 500®, DSPX®, DSPBX®, iTraxx®, CDX®, and Dividend Aristocrats® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by Cboe Exchange, Inc. Cboe® iBoxx® iShares® $ High Yield Corporate Bond Index futures and options on futures, Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index futures and options on futures, and Cboe® iBoxx® $ Emerging Market Bond Index futures are not sponsored, endorsed, sold, or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the iBoxx iShares $ Corporate Bond Indices or the iBoxx® USD Liquid Emerging Market Sovereigns & Sub-Sovereigns Index. The iBoxx® iShares® $ High Yield Corporate Bond Index and the iBoxx® iShares® $ Investment Grade Corporate Bond Index (the “Indexes”), futures contracts on the Indexes and options on futures contracts on the Indexes (“Contracts”) are not sponsored by, or sold by BlackRock, Inc. or any of its affiliates (collectively, “BlackRock”). BlackRock makes no representation or warranty, express or implied to any person regarding the advisability of investing in securities, generally, or in the Contracts in particular. Nor does BlackRock make any representation or warranty as to the ability of the Index to track the performance of the fixed income securities market, generally, or the performance of HYG, LQD or any subset of fixed income securities. BlackRock has not calculated, composed or determined the constituents or weightings of the fixed income securities that comprise the Indexes (“Underlying Data”). BlackRock is not responsible for and has not participated in the determination of the prices and amounts of the Contracts, or the timing of the issuance or sale of such Contracts or in the determination or calculation of the equation by which the Contracts are to be converted into cash (if applicable). BlackRock has no obligation or liability in connection with the administration or trading of the Contracts. BlackRock does not guarantee the accuracy or the completeness of the Underlying Data and any data included therein and BlackRock shall have no liability for any errors, omissions or interruptions related thereto. BlackRock makes no warranty, express or implied, as to results to be obtained by S&P DJI, the parties to the Contracts or any other person with respect to the use of the Underlying Data or any data included therein. BlackRock makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Underlying Data or any data included therein. Without limiting any of the foregoing, in no event shall BlackRock have any liability for any special, punitive, direct, indirect or consequential damages (including lost profits) resulting from the use of the Underlying Data or any data included therein, even if notified of the possibility of such damages. iShares® is a registered trademark of BlackRock Fund Advisors and its affiliates. © 2025 Cboe Exchange, Inc. All Rights Reserved.

Rising rates

Trading Transformation

Geopolitical Tensions

~2,500 high-yield bonds, 3.15 years duration, 7.31% yield

~1,100 investment grade bonds, 8.39 years duration, 5.60% yield

Credit market revolution

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