Tools for Gaining Exposure, Managing Risk
CME Group is offering Euro MAC Swap futures as a novel means of gaining exposure, or managing the risks attendant to Euro-denominated Interest Rate Swap (IRS) instruments.
But they may also be used as a means of hedging or spreading vs. other Euro-denominated fixed income investments, such as bonds or notes issued by a government or corporate entity.
This note summarizes the salient features of Euro MAC Swap futures contracts and discusses their relationship with Euro-denominated bonds.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
