AmEx derivatives book grows on interest rate swap surge
Receive-fixed swaps dominate hedging portfolio as clearing rate spikes
American Express swelled its derivatives book over the 18 months ending last year to levels not seen in seven years, with the portion cleared by a central counterparty climbing to its highest since 2018.
The credit card group quadrupled its notional holdings of interest rate swaps from $4.6 billion in Q2 2023 to $19 billion at the end of 2024, while FX forwards grew 18.1% over the same period to $43.1 billion.
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