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PowerShares files with the SEC
April 29, 2010--PowerShares has filed a post-effective, registration with the SEC for
PowerShares Ibbotson Alternative Completion Portfolio (formerly PowerShares Autonomic Growth NFA Global Asset Portfolio)
(NYSE Arca, Inc. — PTO)
PowerShares RiverFront Tactical Balanced Growth Portfolio (formerly PowerShares Autonomic Balanced Growth NFA Global Asset Portfolio)
(NYSE Arca, Inc. — PAO)
PowerShares RiverFront Tactical Growth & Income Portfolio (formerly PowerShares Autonomic Balanced NFA Global Asset Portfolio)
(NYSE Arca, Inc. — PCA)
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Source: SEC.gov
U.S. Corporate Bond Market: A Review of First-Quarter 2010 Rating and Issuance Activity
Summary
For the third consecutive quarter, the par value of U.S. corporate bonds affected by
downgrades remained below 2% in the first three months of 2010, a pace in line with pre-crisis rating activity. Downgrades affected $47.7 billion in bonds, or 1.4% of market
volume, while upgrades affected $36.6 billion, or 1.1% of market volume. Both
measures were similar to fourth-quarter results. The relative calm on the rating front,
better than expected economic data, fewer defaults, and importantly, demand for
yield product in a low interest rate environment, all provided an ideal backdrop for the
primary issuance market, especially speculative grade issuance, which soared to a record $56.3 billion in the first quarter.
The surge in high yield issuance, with roughly
two-thirds dedicated to refinancing existing bonds and loans, showed a fervent
commitment among issuers to capitalize on favorable funding conditions to both push
out maturities and lock in attractive rates. Fitch observed that 97% of high yield bonds
sold in the first quarter carried maturity dates of 2015 or later, and the median
maturity of the newly minted bonds was eight years.
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Source: Fitch Research
Claymore to close shipping index ETF
April 29, 2010--Claymore Securities, an exchange-traded fund sponsor, intends to close and liquidate the Claymore/Delta Global Shipping Index ETF as a result of not having reached a shareholder quorum.
A joint special meeting of shareholders commenced for shareholders of record as of 13 November 2009 for certain Claymore ETFs and closed-end funds following the change of control stemming from the acquisition of Claymore Group by Guggenheim Partners in late 2009.
The fund’s shareholders were asked to vote on the approval of a new investment advisory agreement between Claymore Exchange-Traded Fund Trust 2 and Claymore Advisors, on behalf of the fund, as a result of the change of control.
Even though over 91 per cent of the proxies cast by shareholders of the fund were in favour of approving the agreement the fund was unsuccessful in reaching a quorum during the allowable period.
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Source: ETF Express
April 2010 “Market’s Measure” Preliminary Report - A Monthly Report From Dow Jones Indexes On The Performance Of U.S., European, Asia And Other Global Stock Market Indexes
April 29, 2010-- Dow Jones Industrial Average Posts 1.74% Gain in APRIL, European Stocks Lose -4.18%, Asia Fall -1.58% and World Equities Fall by -1.17%
Oil & Gas Sector Posts Biggest Gain for April in U.S.
Financials Sector Takes the Hardest Hit for April in Europe
As of April 28 the Dow Jones Industrial Average rose 1.74% in April, closing at 11045.27. Stock market indexes in Europe, Asia and globally was down in April, according to preliminary monthly figures from global index provider, Dow Jones Indexes.
The Dow Jones Industrial Average rose 1.74% in April, closing at 11045.27. Year-to-date, the index is up 5.92%.
The Dow Jones Europe Index fell -4.18% in April to 248.30. So far this year, the index is down -6.03%.
The Dow Jones Asian Titans 50 Index fell -1.58% in April to 137.56. Year-to-date, the index is up 2.45%.
The Dow Jones Global Titans 50 Index fell -1.17% in April, closing at 171.20. Year-to-date, the index is down -1.41%.
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Source: Mondovisione
CFTC Determines that Seven Contracts Traded on the IntercontinentalExchange Inc are Significant Price Discovery Contracts
April 28, 2010--The Commodity Futures Trading Commission (CFTC) today determined, by a 5-0 vote, that seven contracts traded on the IntercontinentalExchange Inc (ICE) perform significant price discovery functions. As such, the contracts must be traded in compliance with applicable core principles and statutory provisions. The Commission considered a total of 24 contracts traded on three Exempt Commercial Markets (ECMs): ICE, the Natural Gas Exchange, Inc (NGX) and the Chicago Climate Exchange, Inc (CCX). The Commission determined that the other 17 contracts it reviewed were not SPDCs.
ECMs are exempt from the provisions of the Commodity Exchange Act, other than the anti-fraud and anti-manipulation provisions. However, Congress provided a regulatory regime for contracts traded on ECMs that the Commission determines to be significant price discovery contracts (SPDCs) comparable to that provided for futures contracts traded on designated contract markets.
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Source: CFTC.gov
Morgan Stanley Capital Group, Inc. to Pay a $14 Million Civil Penalty to Settle CFTC Charges that the Company Concealed a Large Block Crude Oil Trade
UBS Securities Inc. to pay a $200,000 civil penalty to settle CFTC charges of aiding and abetting the Morgan Stanley scheme
April 29, 2010-- The U.S. Commodity Futures Trading Commission (CFTC) today announced the separate filings and simultaneous settlements of charges against Morgan Stanley Capital Group, Inc. (Morgan Stanley) and UBS Securities Inc. (UBS) in connection with Morgan Stanley concealing from the New York Mercantile Exchange (NYMEX) the existence of a large Trade at Settlement (TAS) block crude oil trade and UBS Securities aiding and abetting that concealment.
The CFTC orders require that Morgan Stanley pay a $14 million civil monetary penalty and UBS pay a $200,000 civil monetary penalty. The orders also require Morgan Stanley and UBS to cease and desist from further violations of the Commodity Exchange Act and to comply with certain undertakings.
The CFTC orders, entered on April 29, 2010, find that, in early February 2009, a Morgan Stanley trader and a UBS broker discussed an opportunity for Morgan Stanley to act as a counterparty to a third-party UBS customer to purchase a block of March 2009 crude oil futures contracts and to sell a block of a similar quantity of April 2009 contracts on the NYMEX. The price of the two legs of the trade was to be determined later by the market closing price, an arrangement known as a TAS (Trade at Settlement) block trade.
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Source: CFTC.gov
Geithner Written Testimony before the Senate Appropriations Committee
April 29, 2010--Introduction
Chairman Durbin, Ranking Member Collins, members of the Subcommittee, thank you for the chance to testify about the President's Fiscal Year FY 2011 Budget for the Department of the Treasury.
Treasury plays a critical role in the day-to-day lives of Americans. We disburse Social Security checks, distribute tax credits to stimulate the economy and manage the finances of the United States Government. Under the leadership of President Obama, we have used authority provided by Congress to help responsible homeowners, promote investment in underserved communities, and stimulate lending for the small businesses that create jobs across the country. As we emerge from the worst financial crisis in generations, Treasury's role in both protecting the financial security of Americans and our efforts to stimulate the economy will continue to be essential to the nation's recovery.
Treasury's FY 2011 Budget seeks to invest in four areas: repairing and reforming the financial system to make it safer and help assure that its benefits are broadly shared; boosting voluntary compliance with our tax code to pay for vital government functions; advancing our global economic interests and national security; and rebuilding the Treasury's professional staff.
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Source: U.S. Department of the Treasury
DB Index Research -- Weekly ETP Market Review -- US
April 28, 2010--Highlights
New Listings and Delistings
There were 4 new listings in the last week (Figure 8). Global X Management launched 2 ETFs offering single commodity exposure through mining companies in copper and silver, respectively. The copper miners ETF comes to market with a TER of 65 bps, 5 bps cheaper than its only competitor listed about 1 month ago, while the silver miners ETF is the first of its kind.
The remaining two funds were listed by ProShares, and offer short and leveraged exposure to the US regional banking sector. All four ETFs were listed in NYSE Arca.
Net Cashflows
This week, $2.8 bn flowed into ETPs. Equity, Fixed Income and Commodity ETPs had inflows of $1.8 bn, $658 mm, and $23 mm, respectively. Currency ETPs, on the other hand, experienced outflows of $32 mm.
In the equity asset class, Large Cap ETPs had the highest inflows of $1.2 bn followed by Dividend ETPs, while US sector ETPs experienced the largest outflows of $507 mm, followed by Small Cap ETPs .
Sovereign and Corporate products contributed the most to the positive cash flows into Fixed Income ETPs.
Within Commodity ETPs, those tracking Oil saw the largest inflows followed by those tracking Gold.
Meanwhile, Crude Oil ETPs experienced the largest outflows. Alternative ETPs experienced significant inflows of $255 mm during the previous week, largely fueled by the iPath VIX Futures ETNs.
Turnover
ETP turnover rose by 3.9% during the last week and totaled $65.5 bn.
Turnover in US Sector and Leveraged ETPs had the most significant increase within Equity ETPs (Figures 30 and 33). For Fixed Income ETPs, turnover in the Sovereign space increased the most (Figures 31 and 34). Commodity ETP turnover decreased overall, with Gold ETPs shrinking significantly.
Assets Under Management (AUM)
US ETPs AUM shadowed the markets and rose by 1.4% totaling $854 bn at the end of last week. Equity ETPs had the lion’s share with $644 bn and 75% of market share, followed by Fixed Income funds with $126 bn and 15% of market share
To request a copy of the report
Source: Source: Aram Flores and Shan Lan -DB Index Research
BMO Guardian Funds introduces mutual fund portfolios of ETFs
April 28, 2010--BMO Guardian Funds is launching six new mutual fund portfolios of Exchange Traded Funds (ETFs), giving investors broader choice and greater access to the growing ETF market, the fund group announced Monday.
The new offerings include two tactically managed funds and four strategically managed risk-differentiated portfolios.
Each ETF mutual fund portfolio is a class of BMO Global Tax Advantage Funds Inc., a mutual fund corporation, which allows for switching among other BMO Global Tax Advantage Funds without incurring a taxable event.
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Source: Investment Executive
Supervision of trading desks worries SEC
April 28, 2010--The role played by Wall Street trading desks in selling complex financial securities such as the collateralised debt obligations at the heart of the case against Goldman Sachs has emerged as a key concern of US regulators.
Goldman was accused this month by the Securities and Exchange Commission of fraud for failing to disclose that a hedge fund influenced the composition of a CDO – known as Abacus – which it sold to investors. Goldman denies wrongdoing.
Reid Muoio, deputy chief of a new SEC enforcement unit looking into CDOs and other so-called structured products, told a legal seminar in New York this week that the executives creating these complex financial instruments should have been better supervised by Wall Street’s traditional “gatekeepers”, including lawyers and accountants.
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Source: FT.com