Credit futures surge as investors seek capital-efficient risk tools

Credit futures are gaining traction among institutional investors as a capital-efficient way to manage corporate credit exposure alongside ETFs, CDS and total return swaps, driven by margin efficiencies, duration-hedged exposure and improving liquidity.

Speaking to Trader TV, CME’s Ted Carey, CFA, product lead for US Treasury futures and long-term interest rate products, discusses where the exchange is seeing larger trades increasingly being executed through a mix of on-screen liquidity, block trades and ETF-linked tools, with broader buy-side adoption expected through 2026 as product coverage and liquidity expand.

In this episode:

📌 What’s driving the demand for credit futures?

📌 How are buy-sides adapting their use of credit risk tools?

📌 Diversifying methods for block trading

📌 Which buy-side cohort is adoption taking place?

📌 What can we expect from the rest of 2026?

THIS STORY WAS FIRST PUBLISHED ON TRADERTV.NET