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Euro rate-derivative trading up 3.4x from 2020 to 2023

Original title: Hedging against market volatility · McKinsey & Company · 1 Jul 2024

Fast-moving · data as of 1 Jul 2024

What does the data say about hedging against market volatility?

McKinsey & CompanyView original

Original chart: McKinsey & Company

So what

Euro-denominated interest-rate derivative volumes rose 3.4-fold between 2020 and 2023 as rates turned volatile and depositor behaviour shifted. The low-rate era let many banks run unhedged balance sheets, and that is no longer viable. Treasurers need more frequent, agile hedging and stronger ALM capability.

Data sources
International Swaps and Derivatives Association
Authors
Andreas Bohn
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