Trading volume for most types of over-the-counter fixed-income derivatives was down significantly among pension funds, investment managers and mutual funds in 1995, a new Greenwich Associates report shows. In addition, investment managers' and mutual fund managers' share of fixed-income futures and exchange-traded derivatives volume fell, although pension funds' share held steady, the survey shows.
Among survey respondents, pension fund use of interest rate and cross-currency swaps fell to $100 million from $6.2 billion; investment manager use fell to $100 million from $1 billion; and mutual fund use fell to $100 million from $6.1 billion. But pension fund use of interest rate options, caps, collars, floors or swaptions among survey respondents rose to $500 million from $100 million, as investment manager use fell to $800 million from $2.2 billion, and mutual fund use fell to $300 million from $600 million.
Meanwhile, pension funds' share of futures and exchange-traded fixed income derivatives volume held steady at 13%, while investment managers' share fell to 15% from 21%, and mutual funds' share fell to 12% from 34%.
