Conversion Factor effectively 1 with 1 bond

Can anyone explain why a Conversion factor is effectively 1 if there is only one bond to deliver?

It doesn’t seem to go with my understanding of why there is a Conversion Factor: To adjust the settlement amount paid to the short for the bond that is cheapest-to-deliver–which may have a different maturity and coupon.


I covered T-bond futures here:

When there’s only one bond to deliver, then you have to deliver that bond: the market value of the bond you deliver equals the market value of the theoretical underlying, so CF = 1.0.

Awsome. Thank you.

My pleasure.