Americas ETP News from the Past 3 Months thru 1 Year
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Global Financial Stability Notes-The US Banking Sector since the March 2023 Turmoil: Navigating the Aftermath
March 5, 2024-Summary:
In March 2023, the US banking sector turmoil sent a shockwave through the global financial system. Silicon Valley Bank (SVB), the 16th largest bank in the country, collapsed in a matter of days, followed by Signature Bank (SBNY) and First Republic Bank (FRB), marking the largest bank failures after Washington Mutual Bank in 2008.
Triggered by sizable deposit outflows, this event raised concerns about the soundness of the rest of the US banking sector, in particular, other banks of similar or smaller size with large amounts of uninsured deposits, unrealized losses, and commercial real estate exposures.
The March turmoil is a powerful reminder of the challenges posed by the interaction between tighter monetary and financial conditions and the buildup in vulnerabilities-challenges amplified by ineffective interest, liquidity, and credit risk management practices at some banks. This note offers an analysis of the main attributes of the affected banks to assess the extent to which vulnerabilities persist in a weak tail of banks . Furthermore, the note provides a prospective assessment by evaluating the medium-term risks to financial stability posed by this weak tail.
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Source: imf.org
ETF industry observers advise caution when adjusting portfolios
March 1, 2024--Global elections, regional conflicts and sky-high US equity prices might test the patience of investors this year
Passive investors whose ethos is to try to take very long-term views on their portfolio construction face some hard choices.
This year, a record number of people globally will go to the polls, conflicts in Ukraine and the Middle East show no signs of abating and on a purely technical basis investors have to ask themselves whether the US market, which tends to have a heavy weighting in many portfolios, can continue to trade at record highs.
Andrew Prosser, head of investments at InvestEngine, a UK neobroker that provides DIY and model portfolio solutions using ETFs, advises patience.
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Source: ft.com
Xtrackers by DWS Launches its First Active ETF: NRES
February 27, 2024--Global Natural Resources Fund Combines Strength of DWS' Xtrackers Platform and Liquid Real Assets Expertise
DWS, one of the world's leading asset managers, announced today the listing of its first actively-managed exchange-traded fund (ETF), the Xtrackers RREEF Global Natural Resources ETF (NASDAQ: NRES) (the "Fund").
The Fund is designed to provide investors with exposure to global natural resources (GNR) companies primarily through investments in equity and equity related securities. The Fund seeks total return from both capital appreciation and current income and, as an actively managed ETF, does not seek to replicate the performance of a specific index.
For DWS, this listing marks its entry into the fast-growing actively managed ETF market in the US[1]."More and more investors are recognizing the advantages of this form of investment. Active strategies can adapt to a wide range of market conditions, especially in times of great uncertainty," says Arne Noack, Head of Systemic Investment Solutions, Americas. "Adding the actively managed Xtrackers RREEF Global Natural Resources ETF to our range of US-listed ETFs, combines two of DWS’ global core competencies and expands the range of best-in-class specialty investment solutions, while leveraging the liquidity, cost efficiency, transparency, and potential tax benefits of the ETF structure."
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Source: dws.com
Synthetic convertible ETF aims at Magnificent Seven bond problem
February 26, 2024--Despite their outsized influence, megacap US companies cannot be accessed by traditional convertible bond investor
The world's largest convertible bond manager has unveiled a "synthetic convertibles" exchange traded fund to spread the concept to companies that are so cash-rich they do not need to issue real bonds.
Last year saw a boom in convertibles - a type of bond that can be swapped for shares if a company's stock price hits a pre-agreed level-with issuance jumping 77 per cent to $48bn, according to LSEG.
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Source: ft.com