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World Bank-Managing Fiscal Risk in Colombia
December 2, 2020--A new methodology improves risk analysis and paves the way for infrastructure financing through public-private-partnership programs
Colombia has made transportation infrastructure a priority, investing US$24 billion to create a nationwide toll road network.
The Colombian government has partnered with the World Bank's Government Debt and Risk Management (GDRM) Program for developing a new methodology to better manage the fiscal risks of infrastructure.
The new methodology will improve the mitigation of contingent liabilities for infrastructure projects.
On November 13, 2020, the Colombian government published the "Valuation Methodology For Contingent Liabilities in Infrastructure Projects: The Colombian Case" (English version) -a new methodology to improve the statistical approach and models used in measuring risks for infrastructure contracts. Although intended for all contracts, this new methodology will be especially critical for Colombia's transportation projects.
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Source: World Bank
Beige Book-December 2, 2020
December 2, 2020--Overall Economic Activity
Most Federal Reserve Districts have characterized economic expansion as modest or moderate since the prior Beige Book period. However, four Districts described little or no growth, and five narratives noted that activity remained below pre-pandemic levels for at least some sectors.
Moreover, Philadelphia and three of the four Midwestern Districts observed that activity began to slow in early November as COVID-19 cases surged. Reports tended to indicate higher-than-average growth of manufacturing, distribution and logistics, homebuilding, and existing home sales, although not without disruptions. Banking contacts in numerous Districts reported some deterioration of loan portfolios, particularly for commercial lending into the retail and leisure and hospitality sectors. An increase in delinquencies in 2021 is more widely anticipated. Most Districts reported that firms' outlooks remained positive; however, optimism has waned--many contacts cited concerns over the recent pandemic wave, mandated restrictions (recent and prospective), and the looming expiration dates for unemployment benefits and for moratoriums on evictions and foreclosures.
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Source: federalreserve.gov
Dimensional Fund Advisors Lists Emerging Core Equity Market ETF
December 2, 2020--New ETF offers broadly diversified, all cap core equity exposure to emerging markets with robust daily implementation.
New ETFs offer broadly diversified, all cap core equity exposure with robust daily implementation
Dimensional Fund Advisors, a global leader in systematic factor investing, has listed its third active transparent exchange-traded fund (ETF) and its first ETF that offers exposure to emerging markets stocks.
Dimensional Emerging Core Equity Market ETF (NYSE Arca: DFAE)
Net expense ratio: 0.35%
Listed: December 2, 2020
The ETF, listed on NYSE Arca, is designed to leverage the power of Dimensional's investment engine-a consistent investment philosophy combined with a value-added approach to implementation that the firm has been testing, refining, and advancing for nearly four decades.
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Source: us.dimensional.com
Congress Sets Stage for Exiling Chinese Stocks From U.S. Over Audit Dispute
December 2, 2020--The U.S. has long battled Beijing's resistance to overseas inspections of Chinese companies' audits
The House unanimously approved legislation on Wednesday that threatens a trading ban of shares of Chinese companies such as Alibaba Group Holding Ltd. over concerns that their audits aren't sufficiently regulated.
The bipartisan measure passed the Senate in May and could quickly become law with President Trump's signature. The fight over China's resistance to allowing overseas inspections of its companies' audits has lasted for years but reached a fever pitch during the Trump administration.
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Source: wsj.com
Invesco launches high-yield bond ETF
December 2, 2020--Invesco brought to the Nasdaq stock exchange an actively managed exchange-traded fund that buys below-investment-grade bonds.
The Invesco High Yield Bond Factor ETF follows a factor-based investing strategy and uses derivatives to boost returns and manage risk.
Source: Smartbrief
BlackRock Rebrands Three Alpha-Seeking Actively Managed ETFs To Help Investors Better Navigate Fund Offerings
December 2, 2020--All alpha-seeking active ETFs will be BlackRock branded and all index-based ETFs will remain iShares branded
BlackRock's commitment to helping clients build better financial futures is underscored today in the renaming of three alpha-seeking, actively managed exchange traded funds (ETFs).
Previously branded iShares, the BlackRock Short Maturity Bond ETF (NEAR); BlackRock Short Maturity Municipal Bond ETF (MEAR); and BlackRock Ultra Short-Term Bond ETF (ICSH), now carry the BlackRock brand to reflect the firm's premier active management investment platform. There will be no impact to the funds’ investment objectives, tickers, CUSIPs, total expense ratios or share prices.
Going forward, new alpha-seeking active ETFs will be BlackRock branded and new index-based ETFs will be iShares branded. These changes demonstrate the firm's commitment to help clients better navigate its product offerings and the breadth of BlackRock's investment platform.
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Source: BlackRock
Indxx Launches the Indxx Junior Robotics & AI Index Series
December 1, 2020--Indxx is excited to announce the launch of the Indxx Junior Robotics & AI Index Series (the "Index Series"), which tracks the performance of companies that provide exposure to the robotics, industrial automation, and artificial intelligence sectors.
The Index Series is comprised of the Indxx Global Junior Robotics & AI Index (Ticker: IGJRAI) and the Indxx US Junior Robotics & AI Index (Ticker: IUSJRAI).
"Our Indxx Global Robotics & Artificial Intelligence Thematic Index has been a very successful product globally, and we are pleased to launch these additional indices as the space has continued to grow," said Rahul Sen Sharma, Managing Partner at Indxx. "Robotics and AI have significantly disrupted countless industries, increased productivity, and are the key enablers for the biggest technology, manufacturing, and other companies globally. The Indxx Junior Robotics & AI Index Series will provide exposure to smaller, high growth and innovative companies that have the potential to grow exponentially."
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Source: Indxx
BlackRock Unveils New Offering to Power Investors' Transition to Net Zero Emissions
December 1, 2020--"Aladdin Climate" Sets New Standard in Providing Investors Actionable Security-Level Data on Climate Risk
New Partnerships with Sustainalytics and Refinitiv Add to ESG Data Indicators Available Through Aladdin
Building on BlackRock's strength in risk management through the Aladdin platform, BlackRock today announced it has created Aladdin Climate to meet the urgent need among financial institutions and investors to quantify climate risk in their portfolios as the physical toll of climate change mounts and the global transition to net zero emissions accelerates.
Aladdin Climate is the first software application to offer investors measures of both the physical risk of climate change and the transition risk to a low-carbon economy on portfolios with climate-adjusted security valuations and risk metrics.
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Source: blackrock.com
TrueShares Structured Outcome December ETF launched December 1
December 1, 2020--The TrueShares Structured Outcome ETF Series utilizes a "buffer protect" options strategy, that seeks to provide investors with returns (before fees and expenses) that track those of the S&P 500 Index while seeking to provide an 8-12% downside buffer (with the advisor targeting 10%) on the first of that index's losses over a 12-month investment period.
The DECZ defined investment period begins on December 1, 2020 and resets exactly 12 months later. The strategy is implemented through the purchase and sale of options on the S&P 500 Price Index or an ETF that tracks the S&P 500 Price Return Index. While there is no guarantee the Fund will be successful in providing these outcomes in any period, the intent of the ETFs in the series is to provide uncapped equity market upside participation (subject to options pricing) with a measure of downside risk mitigation.
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Source: true-shares.com
New exchanges bring ambition to reshape US equity market
November 30, 2020--Three new stock exchanges launched in September have begun to alter the shape of the world's biggest equity market, challenging the trio of incumbents that dominate US share trading.
The new bourses have yet to attract significant volumes, accounting for less than 1 per cent of the shares that changed hands in October.
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Source: FT.com