Record $185.2B in index CDS notional from US mutual funds and ETFs in Q2, up 7.3%, is not a risk-on tell. Single-name CDS rose 6.1% to $33.4B. Investors are buying protection, not upside, so watch cre

What happened: US mutual funds and ETFs increased credit default swap positions in the second quarter amid geopolitical uncertainty that rattled global markets. Key numbers: Index CDS positions among retail funds rose 7.3% to a record $185.2 billion in notional, led by US and European investment-grade indexes. Single-name CDS rose 6.1% to $33.4 billion. Why it matters: The shift shows retail funds turning to CDS as credit jitters drove record index positioning, with investment-grade indexes leading the increase.

US mutual funds and ETFs increased credit default swap positions in the second quarter amid geopolitical uncertainty that rattled global markets.

The shift shows retail funds turning to CDS as credit jitters drove record index positioning, with investment-grade indexes leading the increase.