Invesco is first US mutual fund to trade €STR swaptions
Trades were some of just a handful of €STR swaptions to hit the market this year
Invesco has become the first US mutual fund to trade interest rate swaptions on the euro short-term rate (€STR) index, in a sign of confidence in the market for non-linear products tied to the European risk-free rate.
The US fund manager sold €STR swaptions with a notional value of $538 million across eight trades in the first quarter of 2023, according to Risk.net’s Counterparty Radar database.
A first batch of four trades took place in January with JP Morgan as the counterparty. The
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