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Bloomberg announces standardized total return swaps on the Bloomberg Barclays Indices

First Published 30th March 2017

Offers investors synthetic exposure to the most widely-used fixed income benchmarks.

New York - Bloomberg has announced the launch of standardized Total Return Swap contracts on the Bloomberg Barclays Indices, providing predefined synthetic exposure to cash bonds for the most widely-used fixed income benchmarks.

"The introduction of Bloomberg TRS will help drive down costs and risks for a broader set of market participants," said Bloomberg's Global Credit and TRS Business Manager Paul Kaplan. "As margin, risk and post-trade capital requirements have reduced the amount of risk and large bond positions that financial institutions can carry, our standardized total return swaps enable buy-side and sell-side clients to maintain effective trading strategies."

Additional features include:

  • Unprecedented Transparency: Full constituent data and analytics are now available through the Bloomberg Terminal to all Bloomberg Anywhere subscribers. Price discovery will be enhanced with streaming levels from multiple market makers.
  • "Fungible" Trading Solution: Investors are able to enter and exit trades with minimum negotiations.
  • Minimized Tracking Error: Buying swaps as synthetic exposure to indices incurs a lower risk of divergence between the price behavior of a position and the price behavior of a benchmark.
  • Flexibility: Standardized TRS and other OTC products provide alternative positions to holding cash.
  • Scalability: A standardized model and interoperability with Bloomberg's other fixed income analytics supports the introduction of additional benchmarks.