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Remarks, OTC Derivatives Reform, European Parliament, Economic and Monetary Affairs Committee
March 22, 2011--Good afternoon Chairwoman Bowles and members of the Economic and Monetary Affairs Committee. I thank you for inviting me to speak today on regulatory reform of over-the-counter (OTC) derivatives, or swaps.
I am honored that this is the second time that you have asked me to appear before you, but as it goes, it is once again when my daughters are home on spring break. As I did last year, I would like to introduce my two daughters, Lee and Isabel.
Introduction
It has now been more than two years since the financial crisis, when both the financial system and the financial regulatory system failed. So many people in Europe and in the United States who never had any connection to derivatives or exotic financial contracts had their lives hurt by the risks taken by financial actors. But still, the effects of that crisis remain. Throughout the U.S. and Europe, we still have high unemployment, homes that are worth less than their mortgages and pension funds that still have not regained the value they had before the crisis. We still have significant uncertainty in the financial system.
read more
Source: CFTC.gov
Default and Recovery Rate Volatility in Recession and Recovery
April 22, 2011--Summary
The U.S. high yield par default rate fell to 1.1% at the end of February, a level far below 2009’s recession induced 13.7% and also well below the long-term average annual
rate of 5.1%.
A low default rate, however, is not synonymous with low risk. In 2011, for example, key risks to the default outlook center firmly on factors that could derail the recovery. These include soaring oil prices, significantly higher interest rates or other funding disruptions due to risk aversion, and sticky unemployment. In this new study, Fitch examines the factors that have contributed to the recent dramatic, but not entirely unprecedented, swing in default rates, offering context relative to the longterm cyclical behavior of default and recovery rates.
Understanding Default Risk: Key Observations
There is substantial variability around average default rates. From peak to trough, default rates differ by multiples. This variability is further magnified by the cyclicality of recovery rates over periods of economic expansion and contraction.
view more
Source: Fitch Ratings
Remarks, OTC Derivatives Reform, European Parliament, Economic and Monetary Affairs Committee, Brussels, Belgium
Chairman Gary Gensler
March 22, 2011--Good afternoon Chairwoman Bowles and members of the Economic and Monetary Affairs Committee. I thank you for inviting me to speak today on regulatory reform of over-the-counter (OTC) derivatives, or swaps. I am honored that this is the second time that you have asked me to appear before you, but as it goes, it is once again when my daughters are home on spring break. As I did last year, I would like to introduce my two daughters, Lee and Isabel.
Introduction
It has now been more than two years since the financial crisis, when both the financial system and the financial regulatory system failed. So many people in Europe and in the United States who never had any connection to derivatives or exotic financial contracts had their lives hurt by the risks taken by financial actors. But still, the effects of that crisis remain. Throughout the U.S. and Europe, we still have high unemployment, homes that are worth less than their mortgages and pension funds that still have not regained the value they had before the crisis. We still have significant uncertainty in the financial system.
read more
Source: CFTC.gov
Direxion files with the SEC
March 22, 2011-Direxion has filed a post-effective amendment, registration statement with the SEC.
view filing
Source:SEC.gov
NASDAQ OMX Nordic: NASDAQ OMX Nordic offers Market Access to US and Canada
March 21, 2011--NASDAQ OMX Nordic (NASDAQ:NDAQ) today announced the launch of a connectivity service that enables Nordic and Baltic exchange members to send orders in US and Canadian equities to North American equity markets. Market Access - US&Canada utilizes existing technology platform and offers full liquidity of the US and Canadian home markets via one gateway.Hans-Ole Jochumsen, President of NASDAQ OMX Nordic says,
"As a leading global exchange company we are very pleased to offer our exchange members the opportunity to apply existing connectivity to further broaden their choice of investment strategies. With the Market Access - US&Canada, NASDAQ OMX Nordic is taking investors to the US and Canadian home market liquidity via a direct connection to trade in all US and Canadian equities."
NASDAQ OMX will partner with US broker Citigroup to execute the order after the exchange member has sent the order via its existing NASDAQ OMX Nordic connection. With this innovative technical service, trading in US and Canadian equities, ADRs and ETFs will be within reach for all NASDAQ OMX Nordic and Baltic exchange members.
Read more at: http://nordic.nasdaqomxtrader.com/trading/equities/market_access_us/
Source: NASDAQ OMX
Morningstar Direct Fund Flows Update
February Long-Term Flows Strong, Ex-Munis
March 21, 2011--January's momentum continued in February as long-term flows hit $27.9 billion, nearly matching January's robust
$29.8 billion take. Taxable bond and U.S. stock remained the two most popular asset classes, receiving $11.9 billion and $10.1 billion, respectively.
Municipal-bond funds stood out as the only asset class to see outflows. However, the pace slowed considerably as February redemptions were $4.4 billion versus $12.5 billion the previous month.
Alternatively, even money market funds saw inflows of $16.7 billion, reversing January's exodus of more than $75 billion. Global X files with the SEC PIMCO’s ETF Hits $1 Billion With Active Success read more
Barclays considers bid for US securities read more
Morgan Stanley ETF Weekly Update 13-week flows were mostly positive among asset classes US-Listed ETFs: Estimated Largest Flows by Individual ETF request report
Source: Morningstar
March 21, 2011--Global X has filed a post-effwective amendment, registration statement with the SEC for the Global X Auto ETF.
view filing
Source: SEC.gov
March 21, 2011--Actively managed exchange traded funds (ETFs) recently hit a significant milestone as PIMCO's actively managed ETF joins the billion dollar club.
The PIMCO Enhanced Short Maturity Strategy Fund (NYSEArca:MINT) has become the first actively managed ETF to break the $1 billion milestone, and the ETF is sitting comfortably at $1.18 billion in assets, writes Hung Tran for The Mutual Fund Wire .
Source: Yahoo finance
March 21, 2011--Barclays is among a group of investors weighing a rival bid for a portfolio of mortgage-backed securities that has already drawn a $15.7bn offer from AIG, people familiar with the matter said.
The securities are owned by the Federal Reserve Bank of New York and housed within Maiden Lane II, one of the special-purpose vehicles created as part of the insurer’s $180bn rescue during the financial crisis.
Source: FT.com
March 21, 2011--US ETF Weekly Update
Weekly Flows: $7.3 BlnNet Inflows
SPDR S&P 500 ETF (SPY) Posted $5.4 BlnNet Inflows
ETFs Traded $520 Bln Last Week
Launches: 5 New ETFs
US-Listed ETFs: Estimated Flows by Market Segment
ETFs rebounded last week posting net inflows of $7.3 bln(second largest week of the year)
Net inflows were driven by US Large-Cap (SPY specifically), International
Developed and Commodity ETFs
ETF assets stand at more than $1 trillion, up 2.5% YTD
$14.3 blnnet inflows into ETFs over past 13 weeks (International-Developed took in $8.9 bln)
EM Equity ETFs posted meaningful net outflows ($8.9 bln) over the past 13 weeks; EM Equity net outflows have slowed recently, however, with only $685 mlnnet outflows the past 4 weeks
SPDR S&P 500 ETF (SPY) posted net inflows of $5.4 blnlast week, the most of any ETF
Despite uncertainty with events in Japan, iShares MSCI Japan Index Fund (EWJ) generated net inflows of $1.1 blnlast week; over the past 13 weeks EWJ exhibited net inflows of $2.4 bln, the most of any ETF
iSharesMSCI Emerging Markets Index Fund (EEM) had the largest net outflows over the past 13 weeks ($10.2 blnnet outflows)
Source: Morgan Stanley
