Hedging Non-QM for Better Execution
A Scotsman Guide featured sponsor
Eris SOFR Swap Futures were designed with the mortgage industry in mind—delivering the cash flow economics of fixed-vs-SOFR swaps in a standardized futures format. Whether you’re managing the volatility of MSRs, protecting Non-QM pipelines, or optimizing bulk loan sales and securitizations, Eris SOFR delivers the tools to control risk and improve execution
Published March 31, 2026
Real-World Mortgage Applications
- Non-QM/Non-Agency: Hedge loans not eligible for TBA delivery, by trading SOFR rates to match the cash flow behavior of these loans.
- Pipeline Hedging: Protect loan pipelines while building toward bulk or securitization exit; move from best-efforts to optimal execution.
- MSR Hedging: Offset the fair value volatility of your largest balance sheet item with precision hedging on the SOFR curve.
- Rate Sheet Enhancement: Use Eris SOFR to stabilize margins and pass through improved pricing to borrowers.
“Improve your execution through easy and efficient access to SOFR through Eris SOFR swap futures”
John Douglas
Director of Sales
Simple, Scalable, and Efficient
Today, SOFR is the benchmark rate upon which all financing and subsequently all other interest rates are priced, and Eris SOFR makes trading SOFR both accessible and easy. There’s no need for ISDA agreements of expensive OTC clearing processes. With futures documentation, streamlined execution and clearing via CME, Eris SOFR lowers operational costs and improves access to SOFR hedging.
“We hedge our Non-QM pipeline with Eris SOFR Swap futures, allowing us to effectively manage risk at lower margin costs. This strategy enables us to take advantage of alternative executions to flow best efforts.”
Head of Capital Markets of a leading Non-QM originator
