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Official Dollarization as a Monetary Regime: Its Effects on El Salvador -IMF Working paper
June 6, 2011--This paper examines El Salvador’s transition to official dollarization by comparing aspects of this regime to the fixed exchange rate regime prevailing in the 1990s. Commercial bank interest rates are analyzed under an uncovered interest parity framework, and it is found that dollarization lowered rates by 4 to 5 percent by reducing currency risk.
This has generated net annual savings averaging ½ percent of GDP for the private sector and ¼ percent of GDP for the public sector (net of the losses from foregone seigniorage). Estimated Taylor rules show a strong positive association between Salvadoran output and U.S. Federal Reserve policy since dollarization, implying that this policy has served to stabilize economic activity more than it did under the peg and more than policy rates in Central American countries with independent monetary policy have done. Dollarization does not appear to have affected the transmission mechanism, as pass-through of monetary policy to commercial interest rates has been similar to pass-through under the peg and in the rest of Central America.
view the IMF Working paper-Official Dollarization as a Monetary Regime: Its Effects on El Salvador
Source: IMF
iShares files with the SEC
June 6, 2011--iShares has filed a post-effective amendment, registration statement with the SEC for the iShares Floating Rate Note Fund.
view filing
Source: SEC.gov
Pimco files with the SEC
June 6, 2011-Pimco has filed a post-effective amendment, registration statement with the SEC for the PIMCO Foreign Currency Strategy ETF.
view filing
Source: SEC.gov
Morgan Stanley-US ETF Weekly Update
June 6, 2011--Weekly Flows: $713 Million Net Outflows
Launches: 2 New ETFs
Guggenheim Makes Changes on 2 ETFs
FaithShares to Close 4 ETFs
US-Listed ETFs: Estimated Flows by Market Segment
ETFs exhibited net outflows of $713 million last week; flows have been choppy past 8 weeks
US Small- & Micro-Cap ETFs (4% market share) posted the largest net outflows last week ($2.7 billion)
ETF assets stand at $1.1 trillion, up 8% YTD; combination of market appreciation and net new money
13-week flows were mostly positive among asset classes
$28.6 billion net inflows into ETFs over past 13 weeks (Fixed Income took in $10.2 billion)
We estimate ETFs have generated net inflows 14 out of 22 weeks YTD
US-Listed ETFs: Estimated Largest Flows by Individual ETF
SPDR S&P 500 ETF (SPY) rebounded last week, posting net inflows of $1.6 bln
Despite SPY’s positive flows last week, over the past 13 weeks it has posted net outflows of $4.5 bln, the most of any ETF
6 of the top 10 ETFs to post the largest net outflows last week were sponsored by Vanguard; with the
exception of Vanguard FTSE All-World ex-US ETF (VEU), we note last week’s net outflows were very similar
to the prior week’s net inflows for the other 5 ETFs
request report
Source: Morgan Stanley
Brazil encouraging foreign investment in agriculture
June 3, 2011--The agriculture minister of Brazil said they may start leasing farm land to foreigners to find a way around new legal restrictions on land sales and attract more foreign investment.
In the past, foreigners seeking to buy large plots of land were having trouble, after the attorney general’s office reinterpreted real estate law amid concern over property speculation by overseas investors.
But Brazil’s new president, Dilma Rousseff, is looking for ways to ease the restrictions on foreign investment in the farm sector. Rousseff wants to encourage productive foreign investment.
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Source: The sign post
CFTC.gov Commitments of Traders Reports Update
June 3, 2011--CFTC.gov Commitments of Traders Reports have been updated for the week of May 31, 2011 are now available.
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Source: CFTC.gov
BNY Mellon ADR Index Monthly Performance Review is Now Available
June 3, 2011--The BNY Mellon ADR Index Monthly Performance Review is now available.
view upsate
Source: BNY Mellon
Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
June 3, 2011-Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Friday, June 3, 2011:
Harte Gold Corp. (TSXVN:HRT) will be removed from the index. The company will graduate to trade on TSX under the same ticker symbol.
Stans Energy Corp. (TSXVN:RUU) will trade under the new ticker symbol "HRE".
There is no change in the company name or CUSIP number and no consolidation of capital.
Source: Standard & Poor's
Canadian ETF assets rose 0.4 percent in May: Blackrock
June 3, 2011-Assets managed in Canadian exchange traded funds increased by 0.4 percent in May to C$40.6 billion ($41.4 billion), led by inflows into funds linked to commodity prices, according to a report published on Friday.
Canadian ETFs overall had net inflows of C$168 million in May, compared with net outflows of $715 million in April, said the report from BlackRock (BLK.N: Quote), the world's largest money manager.
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Source: Reuters Canada
An ETF From Bill Gross
June 3, 2011--Is it a big deal that famed bond-fund manager Bill Gross is looking to launch an exchange-traded version of his Pimco Total Return fund? The answer may depend on whether you're an investor or a mutual-fund executive.
For investors, the answer is probably, "Meh." For a fund executive, "Yes, but..."
ETFs for the most part have been an attractive option for investors. Their appeal has been strongest in stocks, where they have been mainly index-based and generally offer greater tax efficiency and lower costs than most actively managed funds. ETFs also have opened up commodity investing to a broader audience.
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Wall Street Journal Online
