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U.S. Corporate Credit-Risk Index Increases as New Series Begins Trading
September 20, 2010--A benchmark indicator of U.S. corporate credit risk rose as banks, hedge funds and other money managers started moving trades into a new series of the index.
Series 15 of the Markit CDX North America Investment Grade Index, a credit-default swaps benchmark that investors use to hedge against losses on corporate debt, traded at 106.6 basis points as of 6:37 p.m. in New York, 5.1 basis points wider than Series 14, according to broker Phoenix Partners Group.
New versions of the index are created every six months to replace companies that are no longer investment grade. Issues are also taken out of the index if they’re no longer among the most actively traded in the $25 trillion credit swaps market or fail to meet other index criteria.
Most of the difference between the two series “is probably coming from the fact that you’re rolling to a longer maturity,” said Andrew Kuan, senior trader at Primus Asset Management in New York. “It’s only one name coming in and out. It’s not really changing the makeup of the risk that people have on.”
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Source: Bloomberg
INVESTOR BRANDSCAPE™: 2010-Cogent Research
INVESTOR BRANDSCAPE™: 2010
Measuring the Impact of Brand and Loyalty on Revenue in the Affluent Marketplace
September 20, 2010--The leading industry standard for understanding what drives investment product and
brand selection, Investor Brandscape™ is a critical element of any branding and distribution strategy. Tracking the attitudes and behaviors of affluent investors since 2006, the report explores investors’ awareness, perceptions, usage, share of wallet,
and loyalty to the top investment distributors, mutual fund managers, ETF
manufacturers, and VA providers in the US today.
Areas of Inquiry
Investment Mindset – How do affluent investors
feel about risk and the current environment? What
proportion of their assets are they comfortable managing on their own?
The Role of Advisors – Who uses an advisor and to what extent? How satisfied and loyal are investors to providers? Why do some investors use advisors and have (will) their behaviors change?
Asset Allocation and Product Mix – What products are investors using, to what extent, and why?
Brand Equity and Momentum – Which brands dominate unaided consideration? What do awareness levels look like? Which providers are winning on share of wallet and which brands are at risk?
What firms garner the greatest satisfaction and loyalty? What is driving specific brands’ strengths – or weakness?
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Source: Cogent Research
Exchange-Traded Funds: US ETF Weekly Update-Morgan Stanley - September 20, 2010
September 20, 2010--Highlights
Weekly Flows: $10.4 Billion Net Inflows
ETFs Traded $296 Billion Last Week
Launches: 2 New ETFs
2 State ETFs to Close-Islamic ETF to Close
US-Listed ETFs: Estimated Flows by Market Segment
For the third week in a row, ETFs generated net inflows $10.4 blnlast week
Weekly net inflows were the third largest of the year; net inflows driven by SPY last week-ETF assets stand at $864 bln; up 11% YTD
13-week flows were mixed among different asset classes
$25.8 bln net inflows into ETFs over 13 wks; International
EM eclipsed Fixed Income over past 13 wks
SPY posted net inflows of $8.1 blnlast week, the most of any ETF
SPY has generated net inflows of $10.9 blnover past 2 weeks; still in the red for the year
Over 13-wk period, 2 EM equity funds (EEM & VWO) have taken in most new money ($9.6 blncombined)
US-Listed ETFs: ETF Dollar Volume
Market share of mthly ETF volume as % of listed volume has more than doubled over 5 yrs
US Large
Cap accounts for 45% weekly ETF volume, but only has 21% of market cap
Fixed Income accounts for only 4% weekly ETF volume, but has 16% of market cap
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Source: ETF Research-Morgan Stanley
Pimco Rolls Out Build America Bonds ETF
As muni market risks rise, passive indexation can emphasize the wrong issuers. Pimco's new ETF, however, is the first to offer active management of BABs.
September 20, 2010--AT FIRST GLANCE, Tuesday's scheduled launch of Pimco's latest municipal exchange-traded fund might seem more a matter of style than substance.
After all, the Pimco Build America Bond Strategy Fund (ticker: BABZ) joins an ETF party 10 months late. The first, Invesco PowerShares Build America Bond Portfolio (BAB) has attracted more than $547 million in assets since its launch last December, according to fund-tracker Morningstar, a pace of inflows that is beating some of the industry's biggest asset gathers.
Until now, it has faced only one other competitor: the SPDR Nuveen Barclays Capital Build America Bond ETF (BABS), which was launched five months after BAB and hasn't found nearly the traction with investors.
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Source: Barrons
Morningstar may drop star ratings for leveraged, inverse ETFs
September 20, 2010--Morningstar Inc., a Chicago-based research firm, may stop rating leveraged and inverse exchange- traded funds on a scale of one to five stars because of concerns about their suitability for individual investors.
The company is considering removing the ETFs from broader fund categories and putting them in a separate group, Scott Burns, Morningstar's director of ETF research, said in a telephone interview. The change would also end the funds' star ratings, he said.
“Star ratings are meant for investment vehicles and these are trading vehicles,” Burns said.
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Source: Investment News
U.S. International Reserve Position
September 20, 2010--The Treasury Department today released U.S. reserve assets data for the latest week. As indicated in this table, U.S. reserve assets totaled $130,249 million as of the end of that week, compared to $129,482 million as of the end of the prior week.
I. Official reserve assets and other foreign currency assets (approximate market value, in US millions)
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September 17, 2010 |
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A. Official reserve assets (in US millions unless otherwise specified) 1 |
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130,249 |
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(1) Foreign currency reserves (in convertible foreign currencies) |
Euro |
Yen |
Total |
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(a) Securities |
9,271 |
15,164 |
24,435 |
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of which: issuer headquartered in reporting country but located abroad |
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0 |
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(b) total currency and deposits with: |
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(i) other national central banks, BIS and IMF |
13,673 |
7,431 |
21,104 |
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ii) banks headquartered in the reporting country |
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0 |
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of which: located abroad |
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0 |
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(iii) banks headquartered outside the reporting country |
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0 |
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of which: located in the reporting country |
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0 |
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(2) IMF reserve position 2 |
12,231 |
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(3) SDRs 2 |
56,636 |
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(4) gold (including gold deposits and, if appropriate, gold swapped) 3 |
11,041 |
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--volume in millions of fine troy ounces |
261.499 |
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(5) other reserve assets (specify) |
4,802 |
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--financial derivatives |
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--loans to nonbank nonresidents |
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--other (foreign currency assets invested through reverse repurchase agreements) |
4,802 |
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B. Other foreign currency assets (specify) |
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--securities not included in official reserve assets |
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--deposits not included in official reserve assets |
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--loans not included in official reserve assets |
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--financial derivatives not included in official reserve assets |
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--gold not included in official reserve assets |
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--other |
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Source: U.S. Department of the Treasury
S&P And The Options Clearing Corporation Bring Central Counterparty Clearing To OTC Index Options
September 20, 2010--Standard & Poor's, the world's leading index provider, and The Options Clearing Corporation (OCC), the world's largest equity derivatives clearing organization, announced today that S&P has licensed the OCC to clear Over-The-Counter (OTC) options based on the S&P 500.
This landmark agreement represents the first time that central counterparty clearing will be available for OTC options based on the S&P 500, and marks OCC's first step into OTC equity derivatives clearing.
The licensing agreement between S&P and OCC, which also covers the S&P MidCap 400 and S&P SmallCap 600, will provide for greater risk management in the OTC equity derivatives marketplace served by these key indices. OCC will leverage its existing systems to provide clearing services. Pending regulatory approval, OCC expects to launch the service in summer 2011.
"OCC is pleased to work with S&P in taking this first step toward bringing the CCP clearing benefits of greater efficiency and risk reduction to the OTC equity derivatives arena," said Wayne P. Luthringshausen, OCC Chairman and CEO. "We will continue to work with our clearing members and market participants to best serve the needs of this evolving marketplace."
"This landmark licensing agreement is a prime example of Standard & Poor's helping to bring greater transparency and precision to the U.S. marketplace," says Alex Matturri, Executive Managing Director at S&P Indices. "It also marks the first time that any index provider has licensed its indices for central counterparty clearing."
Widely considered the single best gauge of the U.S. equity market since its launch in 1957, the S&P 500 is the world's most followed stock market index with $1.1 trillion directly indexed and $4.83 trillion benchmarked to it.
Source: Standard & Poors
Semi-Annual Changes to the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index
September 20, 2010--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) and Clean Edge, Inc. announced today the results of the semi-annual evaluation of the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index (Nasdaq:QGRD), which will become effective with the market open today.
The following four securities will be added to the Index: Wasion Group Holdings Ltd. (3393 HK), Hubbell Inc. (HUB/B UN), Red Electrica Corp SA (REE SM), and Thomas & Betts Corp. (TNB UN).
The Index is designed to act as a transparent and liquid benchmark for the smart grid and electric infrastructure sector. The Index includes companies that are primarily engaged and involved in electric grid; electric meters, devices, and networks; energy storage and management; and enabling software used by the smart grid and electric infrastructure sector. The securities must also meet other eligibility criteria which include minimum requirements for market capitalization and average daily dollar trading volume. The NASDAQ OMX Clean Edge Smart Grid Infrastructure Index is evaluated semi-annually in March and September. For more information about the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index, including detailed eligibility criteria, visit https://indexes.nasdaqomx.com/.
The First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund (Nasdaq:GRID) is an exchange traded fund that seeks investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of the NASDAQ OMX(R) Clean Edge(R) Smart Grid Infrastructure Index.
As a result of the evaluation, no securities will be removed from the Index.
Source: NASDAQ OMX Global Index Group
Semi-Annual Changes to the NASDAQ OMX Clean Edge Global Wind Energy Index
September 20, 2010--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) and Clean Edge, Inc. announced today the results of the semi-annual evaluation of the NASDAQ OMX(R) Clean Edge(R) Global Wind Energy Index (Nasdaq:QWND), which will become effective with the market open today.
The following three securities will be added to the Index: Innergex Renewable Energy Inc. (INE CN), RWE AG (RWE GY), and Theolia SA (TEO FP).
The Index is designed to act as a transparent and liquid benchmark for the global wind energy sector. The Index includes companies that are primarily manufacturers, developers, distributors, installers, and users of energy derived from wind sources. The securities must also meet other eligibility criteria which include minimum requirements for market capitalization and average daily dollar trading volume. The NASDAQ OMX(R) Clean Edge(R) Global Wind Energy Index is evaluated semi-annually in March and September. For more information about the NASDAQ OMX(R) Clean Edge(R) Global Wind Energy Index, including detailed eligibility criteria, visit https://indexes.nasdaqomx.com/.
The NASDAQ OMX Clean Edge Global Wind Energy Index is the basis for the PowerShares Global Wind Energy Portfolio (Nasdaq:PWND), which seeks investment results that correspond generally to the price and yield of the NASDAQ OMX Clean Edge Global Wind Energy Index before fees and expenses.
As a result of the evaluation, the following six securities will be removed from the Index: Broadwind Energy Inc. (BWEN UQ), Centrica PLC (CNA LN), Clipper Windpower PLC (CWP LN), Greentech Energy Systems (GES DC), PNE Wind AG (PNE3 GY), and Terna Energy SA (TENERGY GA).
Source: NASDAQ OMX
CFTC.gov Commitments of Traders Reports Update
September 17, 2010--The CFTC.gov Commitments of Traders Reports for the week of September 14, 2010 is now available.
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Source: CFTC.gov
