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).