Investment Grade Bond ETF Puts Reach 11.5M, Tech Spreads Climb to 556 bps
Put option open interest across four major US credit ETFs including iShares iBoxx $ Investment Grade Corporate Bond ETF hit a record 11.5 million contracts, doubling in 12 months. Tech high-yield spreads surged to 556 basis points, a 195 basis-point premium over broader junk bonds at 361 basis points.
1. Record Hedge Activity in Credit ETFs
Combined put option open interest across HYG, JNK, LQD and BKLN reached 11.5 million contracts, doubling over the past year and exceeding levels seen during the 2022 credit selloff.
2. Tech Junk Bond Spreads Widen to Multi-Year Highs
Tech high-yield credit spreads rose to 556 basis points, representing a 195 basis-point premium over the broader high-yield market's 361 basis points and marking the widest gap since October 2023.
3. European Credit Stress Mirrors U.S. Worries
iTRAXX Europe Crossover climbed to around 270 basis points while the iTRAXX Europe Main index rose to about 57 basis points, highlighting growing debt-market concerns that could reverberate into digital asset volatility.