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Ucits funds ramped up macro trades in latest data

Created at 12 Aug · 3:36 AM1 source↑ Market-relevant
IN SHORT

European Ucits funds significantly increased their use of foreign exchange and interest rate derivatives in the latter half of 2025. Credit derivative positions also shifted towards broader, more bullish index exposures.

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Who's Involved

Ucits funds
European funds that sharply expanded use of FX and rates derivatives
Risk.net’s Counterparty Radar database
Tracks notional growth across five derivative instruments

↳ Why This Matters

The increased activity in derivatives by European Ucits funds signals a strategic shift in how these funds are managing risk and seeking returns, potentially impacting currency, interest rate, and credit markets.

Key facts

  • European Ucits funds significantly increased their use of foreign exchange and interest rate derivatives in the second half of 2025.
  • Credit derivative positions shifted towards broader, more bullish index exposures.
  • Notional values grew rapidly across FX forwards, interest rate swaps, inflation swaps, and index CDSs.

European Ucits funds significantly expanded their use of foreign exchange and rates derivatives in the second half of 2025. Concurrently, credit derivative books saw a tilt towards broader, more bullish index positions. Notional values grew rapidly across four of the five instruments tracked by Risk.net’s Counterparty Radar database: FX forwards, interest rate swaps, inflation swaps, and index credit default swaps (CDSs).

Frequently asked questions

Ucits (Undertakings for Collective Investment in Transferable Securities) are investment funds regulated in the European Union that can be marketed across all EU member states.

FX forwards are agreements to exchange currencies at a future date at a predetermined rate, while interest rate swaps involve exchanging interest rate payments.

Index credit default swaps (CDSs) are derivative contracts that offer protection against the default of a basket of debt issuers, often used to hedge or speculate on credit market risk.

What Happens Next

01
Further data releases will track continued trends in derivative usage by Ucits funds.

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Cadence
CME Headlines
  • Euro futures held near 7-week highs ahead of key CPI and PPI data.
    11 Aug · 9:00 PM
  • Euro futures held near 7-week highs ahead of key CPI and PPI data.
    11 Aug · 9:00 PM
  • Japanese Yen futures fell as unexpected trade deficit weighed.
    10 Aug · 10:10 PM

How It Developed

European Ucits funds expanded their use of FX and rates derivatives.
Credit books tilted towards broader, more bullish index positions.
Notional grew rapidly across FX forwards, interest rate swaps, inflation swaps, and index CDSs.

Sources

T1
Ucits funds ramped up macro trades in latest dataRisk.net

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