October 17, 2023 (NO COMMENTS)
US banks fled interest rate futures to pile into interest rate swaps during the second quarter, as the Federal Reserve telegraphed it would not let up on tightening the cost of lending, even after several regional lenders buckled under the weight of rising market yields. Total notional value
for interest rate futures across 32 banks tracked by Risk Quantum slid 19%, or $1 trillion, to $4.32 trillion, the lowest since at least Q3 2016. Interest rate swaps notionals, on the flip side, climbed 3%