Texas bank hedges duration with Eris SOFR

• Eris SOFR is featured in a recent case study from Hedgestar, an independent provider of outsourced valuation and hedge accounting services
• It’s a real-world example of a Texas-based bank using Eris SOFR to protect against rising interest rates, and the positions were assigned as FASB fair-value hedges
• Many banks considered swap hedges in 2020-2021; the simplicity of Eris SOFR helped this bank move forward quickly and lock in rates before they rose more than 500 basis points
• This recent article from CME Group’s Eric Leininger provides additional insight on Eris SOFR for Bank Asset/Liability Management

Eris SOFR helps private credit grow

• The global private debt market will double to $3.5 trillion by 2028, according to a recent report from BlackRock
• Drivers include banks pulling back from lending, and increased appetite for private lending assets among institutional investors
• CME Group’s recent article explains how Eris SOFR is helping Private Lenders offer more competitive fixed rate loans, lock in interest rate spreads, and aggregate loans to increase resale value
• Eris Innovations is a proud member of the National Private Lenders Association

Trade Swap Spreads with Futures

• CME will launch inter-commodity spreads between Treasury Futures and Eris SOFR Swap Futures on Sunday, November 12
• With market makers streaming spread orders and CME Globex implied pricing functionality activated, these ICS markets inter-connect the Treasury Futures and Eris SOFR markets
• These “Futures Swap Spread” markets enable participants to take a view on swaps versus treasuries in futures form, without execution risk for the two legs

 Eris coming to NY for IMN MSR

• Michael Riddle and Geoffrey Sharp from Eris Innovations will be in New York Nov 9-10 as sponsors of the IMN Mortgage Servicing Rights Forum, alongside CME Group
• They will join the CME Group Interest Rates team in distributing “Hedge Mortgage Servicing Rights with Eris SOFR,” a new article recently published by the CME Group Research & Product Development team

Eris Essentials

• Eris SOFR product details
• Live Eris markets
• Contract specifications
• CME Eris SOFR primer
• The Eris Methodology
• Contract Lookup: swap dates, coupons, price components
• Treasury Futures Hedge Ratios
• Historical Margins
• Margin savings vs. swaps (NEW)
• Why is futures margin lower than swaps? (NEW)

Eris Innovations is an intellectual property licensing company that partners with CME Group to develop futures based on its patented product design, the Eris Methodology. CME Group lists Eris SOFR, Eris Libor and Eris BSBY Swap Futures for trading on the CBOT exchange.

info@erisfutures.com | www.erisfutures.com | 646-961-4489