Key facts
- Life insurers' interest rate swap books hit $1.4 trillion notional in Q2.
- Mutual fund and ETF positions in rate derivatives reached $973.2 billion in Q2.
- The number of active buy-side firms in rates markets increased in Q2.
US rates markets saw increased activity in the second quarter following a volatile first quarter. Data indicates that US mutual funds, exchange-traded funds, and life insurers expanded their notional positions in various rate derivatives. Life insurers, in particular, reported a new notional high for their interest rate swap books, reaching $1.4 trillion. Positions held by mutual funds and ETFs also saw growth, climbing to $973.2 billion. The increase in activity was accompanied by a rise in the number of active buy-side firms participating in these markets.