Americas ETP News
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Global X files with the SEC
October 28, 2010--Global X has filed a post effective amendment, registration statement with the SEC for 2 ETFs
Global X Russell Emerging Markets Growth ETF
Global X Russell Emerging Markets Value ETF
view filing
Source: SEC.gov
Pimco files with the SEC
October 28, 2010--Pimco has filed a post effective amendment, registration statement with the SEC for 6 actively-managed ETFs.
3 short duration
PIMCO Enhanced Short Maturity Strategy Fund (MINT NYSE Arca)
PIMCO Government Limited Maturity Strategy Fund (GOVY)
PIMCO Prime Limited Maturity Strategy Fund (PPRM)
2 Tax-exempt municipal
PIMCO Short-Term Municipal Bond Strategy Fund (SMMU NYSE Arca)
PIMCO Intermediate Municipal Bond Strategy Fund (MUNI NYSE Arca)
1 Taxable Municipal
PIMCO Build America Bond Strategy Fund (BABZ NYSE Arca)
view filing
Source: SEC.gov
Upgrades Top Downgrades; Issuance Soars in U.S. Corporate Bond Market in 3Q'10
October 28, 2010--The par value of U.S. corporate bonds affected by upgrades again topped downgrades in the third quarter of 2010 and by a wider margin that in the second quarter. Downgrades of $21.1 billion affected 0.6% of market volume while upgrades of $51.7 billion moved 1.5% of outstanding bonds.
The third-quarter downgrade tally was the lowest level of the year and in line with similar activity in the precrisis years of 2006-2007. While downgrades had a muted impact on both the investment-grade and speculative-grade portions of the market, the vast majority of the quarter's upgrades were concentrated at the speculative-grade level - a trend repeated in each quarter of 2010. Through September, the par value of U.S. corporate bonds affected by downgrades at $95.8 billion, trails upgrades of $123.4 billion.
read more
Source: Fitch Ratings
Knight Capital Group Announces Agreement to Acquire Designated & Lead Market Maker Businesses from Kellogg Capital Markets
Acquisition augments Knight's current partnership with NYSE Euronext through the addition of the DMM and LMM units
October 28, 2010-Knight today announced that it has entered into an agreement to acquire Kellogg Capital Markets' (Kellogg) Designated and Lead Market Maker businesses, which make markets in approximately 800 NYSE and NYSE Amex listed securities and 322 NYSE Arca exchange traded funds (ETFs). Knight anticipates that it will assume Kellogg's responsibilities across its entire portfolio of NYSE-, NYSE Arca- and NYSE Amex-listed securities as well as Kellogg's participation in the NYSE Amex UTP program.
The acquisition will build upon Knight's electronic market making business by adding another venue in which to make markets. It will also leverage Knight's strengths in trading technology to efficiently provide liquidity for its new listing companies. Kellogg's Designated Market Maker (DMM) business will complement Knight's current liquidity providing activities as a Supplemental Liquidity Provider (SLP) on NYSE and a NYSE Amex UTP DMM. The addition of Kellogg's ETF Lead Market Maker (LMM) business will be incremental to Knight's electronic market making and institutional ETF sales and trading team.
"The Kellogg acquisition is a natural extension of two of our already successful businesses: electronic market making and ETF trading," said Thomas M. Joyce, Chairman and Chief Executive Officer, Knight Capital Group. "We are excited to further our partnership with the NYSE Euronext, a prominent global brand. We also look forward to continuing the strong and meaningful relationships that Kellogg has built with its listed companies."
read more
Source: Knight
ETF Securities Launches New Precious Metals Basket (GLTR)
First US-Based Product to Offer Gold, Silver, Platinum and Palladium
under a Single Ticker
October 27, 2010--Highlights of The New Offering
Unique offering: ETFS Physical Precious Metal Basket Shares (Ticker: GLTR) will be the first US-based physically backed precious metal basket ETP to hold gold, silver, platinum and palladium in fixed weights.
GLTR complements the existing suite of products provided by ETF Securities and continues to offer the broadest range of physically backed precious metal ETPs in the US market.
>Precious metals Basket: It is expected that GLTR will appeal to those investors looking for a "one size fits all" ETP for their precious metal exposure.(
Cost effective: The Sponsor's Fee for GLTR will be 0.60%(3). It is expected that the transaction costs for buying and selling the Shares will be lower than purchasing, storing and insuring physical gold, silver, platinum and palladium.
Liquid - The Shares will trade on the NYSE Arca. The Trust structure allows for shares to be created and redeemed according to supply and demand in the market.
Transparent - The gold, silver, platinum and palladium bullion held by the trust is inspected biannually by the independent metal assayer, Inspectorate International. The pricing information, net asset value, and precious metals bar numbers held by the Trust are published daily on our website www.etfsecurities.com.
Flexible - The shares are available to be bought or sold, like ordinary listed securities throughout the trading day. The shares are eligible for margin accounts.
Source: ETF Securities
U.S. Leveraged Market Quarterly
October 27, 2010--Corporate Credit Themes
Although market fears of a double-dip recession appeared to peak in August and recede somewhat in September, recently released economic data have once again led the market to regard a stagnating economy as the biggest risk factor that could potentially derail the corporate credit recovery moving into 2011.
Sector Spotlight: Media & Entertainment
The media & entertainment sector significantly over-indexed the corporate bond default rate in
2009. Thus far in 2010, from an operating perspective, advertising revenue has rebounded off
of 2009 trough levels. Through the first six months of 2010, advertising is up over 5%. The recovery has been broad based across subsectors, with only newspapers and Yellow Pages still
posting declines. Fitch’s base case for 2011 anticipates a modest growth scenario that should support ad growth of 1%–3% even with the absence of the Olympics and lower political spend.
Sector Spotlight: Latin America The Latin America corporate issuers have performed relatively well since the financial crisis began in the middle of 2007. Only eight cross-border issuers defaulted during this time period. The overall credit quality of Fitch’s lowest rated companies in the region is relatively healthy and the trends are positive.
U.S. High Yield Default Trends
The U.S. default rate continued to trend lower this quarter with eight issuer defaults affecting a combined $2.5 billion in bonds. On a trailing 12-month basis, the default rate fell to 3.5% at the end of September, down from 4.5% at the end of June and 13.7% at the end of 2009. The default rate is expected to finish 2010 at roughly 1%-one of the lowest levels on record according to Fitch’s High Yield Par Default Index.
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Source: Fitch Ratings
U.S. Department of the Treasury Economic Statistics - Monthly Data Update
October 27, 2010--The Monthly Data for U.S. Department of the Treasury has recently been updated, and is now available.
view update
Source: U.S. Deaprtment of the Treasury
Retail investors now piling in to ETFs, says Schwab
October 27, 2010--Over the last six months, The Charles Schwab Corp. has seen flows from individual investors in exchange-traded funds surpass flows from registered investment advisers, marking the first time ever this has happened.
Overall, the ratio of ETF assets held between advisers and investors is 50-50, Peter Crawford, senior vice president of investment management services at Schwab, said in an interview at Schwab's Impact conference, which is being held in Boston this week.
“Registered investment advisers are early adopters,” Mr. Crawford said. But now that investors have a better sense of what ETFs are, they are more comfortable investing in them, he said.
read more
Source: Investment News
Global X files with the SEC
October 27, 2010--Global X has filed a post effective amendment, registration statement with the SEC for
Global X Gold Explorers ETF
NYSE Arca, Inc: GLDX
view filing
Source: SEC.gov
Barclays Announces Reverse Split of iPath® S&P 500 VIX Short-Term Futures™ Exchange Traded Notes
October 27, 2010--Barclays Bank PLC announced today that it will implement a 1 for 4 reverse split of its iPath® S&P 500 VIX Short-Term FuturesTM Exchange Traded Notes (the “Notes”) effective Tuesday, November 9, 2010. The Notes trade on the NYSE Arca under the ticker symbol VXX and on the Toronto Stock Exchange (“TSX”) under ticker symbols VXX and VXX.U.
Barclays Bank PLC has the right (but not the obligation) to initiate such a reverse split if the closing indicative value of the Notes falls below $25.00 on any business day, as described in the pricing supplement relating to the Notes. On October 25, 2010, the closing indicative value of the Notes was $12.68.
The record date for the reverse split will be the close of business, New York time, on November 8, 2010. The closing indicative value of the Notes on the record date will be multiplied by four to determine the reverse-split adjusted value of the Notes. The reverse split will be effective at the open of trading on November 9, 2010 and the Notes will begin trading on the NYSE Arca and the TSX on a reverse-split adjusted basis on such date. The reverse-split adjusted Notes will have a new CUSIP, but will retain the same ticker symbols.
Investors who, as of the record date, hold a number of Notes that is not divisible by four will receive one reverse-split adjusted Note for every four Notes held on the record date and a cash payment for any odd number of Notes remaining (the “partials”). The cash amount due on any partials will be determined on November 16, 2010, based on the closing indicative value of the reverse-split adjusted Notes on such date and will be paid by Barclays Bank PLC on November 19, 2010.
For more information regarding the reverse split process, see the pricing supplement relating to the Notes under the heading “Valuation of the ETNs—Split or Reverse Split” and the Frequently Asked Questions document “iPath® ETNs Splits and Reverse Splits.” The pricing supplement can be found on EDGAR, the SEC website at: www.sec.gov. The pricing supplement and Frequently Asked Questions are also available on www.iPathETN.com.
Source: Barclays
