Cboe Global (CBOE) to Introduce New Options on Bond Index
Cboe Global Markets, Inc. CBOE is set to expand its corporate bond index product suite with new options on Cboe iBoxx iShares $ High Yield Corporate Bond Index futures (“IBHY”) and Cboe iBoxx iShares $ Investment Grade Corporate Bond Index futures (“IBIG”). These new options are scheduled to be listed for trading on Cboe Futures Exchange, LLC (“CFE”) beginning Jul 10 and the trading hours will be extended to around 24-hours per weekday in the third quarter of 2023.
The iBoxx iShares $ Corporate Bond Indices are the products of S&P Dow Jones Indices LLC. The bond indices are designed to reflect the performance of the U.S. dollar-denominated high yield corporate debt, offering broad coverage of the USD high yield liquid bond universe. The index is an integral part of the global iBoxx index family, which provides the marketplace with accurate and objective indices to assess the performance of bond markets and investments.
The new options on Cboe iBoxx iShares Bond Index futures will furnish additional tools to help investors manage exposure and mitigate risk in corporate bond portfolios. The addition of these new products will provide investors with expanded risk management tools that can help them more effectively manage their credit portfolios.
The new IBHY and IBIG options on futures will enable a wide range of futures market participants to use these products, including those unable to access securities-based options products. Also, the extending trading to global hours for IBHY and IBIG futures will help investors in the United States and abroad more efficiently manage positions.
The price of IBHY futures is based on the iBoxx iShares $ High Yield Corporate Bond Index, while that of IBIG futures is based on the iBoxx iShares $ Investment Grade Corporate Bond Index. The new options will have American-style exercise. It will be physically-settled and will trade electronically on CFE during regular trading hours.
Cboe Global is committed to benefiting its participants and driving the global marketplace forward through product innovation, leading edge technology and seamless trading solutions. CBOE has been driven by a unique vision and commitment to continually innovate to meet the evolving needs of the global financial industry. From pioneering options and volatility trading to introducing new technologies and market models, the company has transformed the way market participants transfer risk and build capital.
Riding on the strength of index options and volatility products as well as solid volumes in options trading, the derivatives business should continue to benefit, which, in turn, will add to the total net revenues of the exchange holding company.
Shares of this Zacks Rank #3 (Hold) company, in terms of offering cutting-edge trading and investment solutions to investors globally, have outperformed the industry in the past year. The stock has gained 18.9%, outperforming the industry’s rise of 3.7%. Cboe Global’s diversified product portfolio and strong liquidity position should drive the stock going forward.
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Stocks to Consider
Some better-ranked stocks from the finance sector are Reinsurance Group of America RGA, Primerica, Inc. PRI and GoHealth, Inc. GOCO.
Reinsurance Group’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, while missing in one. RGA sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RGA’s 2023 and 2024 earnings per share indicates a year-over-year increase of 22.9% and 1.4%, respectively. In the past year, RGA’s shares have gained 18.4%.
Primerica’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, while missing in one. PRI carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for PRI’s 2023 and 2024 earnings per share indicates a year-over-year increase of 34% and 11.5, respectively. In the past year, PRI’s shares have surged 62.6%.
GoHealth’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters, missing the other two. Currently, GOCO carries a Zacks Rank #2.
The Zacks Consensus Estimate for GOCO’s 2023 and 2024 earnings per share indicates a year-over-year increase of 73.1% and 12.2%, respectively. In the past year, GOCO’s shares have surged 115.8%.
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Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
Reinsurance Group of America, Incorporated (RGA) : Free Stock Analysis Report
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