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CBO-Monthly Budget Review for August 2020
September 8, 2020--The federal budget deficit in August 2020 was $198 billion, CBO estimates, $3 billion less than the deficit in August of last year. However, that comparison is distorted by shifts in the timing of certain payments.
The cumulative federal budget deficit for the first 11 months of fiscal year 2020 was $3.0 trillion, CBO estimates, $1.9 trillion more than the deficit recorded for the same period last year.
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Source: CBO(Congressional Budget Office)
Fall 2020-IPO Market:Tech Unicorns Leap Through the IPO Window
September 4, 2020--The US IPO market roared back to life this summer, and recent filings signal a very active fall. 2020 is now on track to surpass last year by deal count and proceeds, with the biggest IPO market by capital raised since 2014.
The IPO window is wide open,as tech multiples near historic highs and recent offerings boast strong returns. 2020 IPOs average a 36% first-day pop, and the Renaissance IPO Index has returned more than 50% year-to-date. September and October look to be especially active, as companies attempt to go public ahead of the upcoming US election. As of September 4, there were 84US IPOs publicly on file, 54of which have submitted a new or updated filing since June 1. New filings hit a more than 10-year record for July and August combined. AlthoughPalantir and Asana have both filed for direct listings, the rest are pursuing traditional IPOs.
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Source: Renaissance Capital LLC
Fed could ramp up corporate debt purchases if volatility persists -Citi
September 4, 2020--The Federal Reserve may ramp up its purchases of corporate bonds if stocks and corporate debt markets weaken further, following a sharpest stock sell-off, analysts at Citigroup said in a report.
Investors dumped high-flying technology stocks on Thursday and Friday, while investment-grade corporate bond spreads widened one basis point to 135 basis points, based on the ICE BofA U.S. Corporate Index.
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Source: reuters.com
BlackRock's iShares debuts ETF investing in Kuwait
September 3, 2020--BlackRock's iShares brought to Cboe Global Markets an exchange-traded fund giving investors exposure to Kuwaiti companies.
The iShares MSCI Kuwait ETF is designed to replicate the performance of the MSCI All Kuwait Select Size Liquidity Capped Index.
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Source: smartbrief
JPMorgan Dethrones Pimco With the Biggest Actively Managed ETF
September 3,2020--JPST overtakes MINT after $3.7 billion of inflows in 2020
Active funds still a small part of the $4.9 trillion market.
There's a new king of actively managed exchange-traded funds.
The JPMorgan Ultra-Short Income ETF, ticker JPST, surpassed the long-reigning PIMCO Enhanced Short Maturity Active ETF, ticker MINT, as the largest active fund in the $4.9 trillion market. JPST has surged to $13.94 billion in assets after launching in May 2017, overtaking the $13.88 billion MINT, which debuted in November 2009.
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Source: bloomberg.com
U.S. Trade Deficit Widest Since 2008 in July as Imports Outpaced Exports
September 3, 2020--The U.S. trade deficit widened in July as Americans' appetite for foreign-made goods bounced back while exports rose more modestly.
The foreign-trade gap in goods and services expanded 19% from the prior month to a seasonally adjusted $63.56 billion in July, the Commerce Department said Thursday
That was the largest monthly trade deficit since July 2008, during the 2007-2009 recession.
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Source: wsj.com
Beige Book-September 2, 2020
September 2, 2020--Overall Economic Activity
Economic activity increased among most Districts, but gains were generally modest and activity remained well below levels prior to the COVID-19 pandemic. Manufacturing rose in most Districts, which coincided with increased activity at ports and among transportation and distribution firms. Consumer spending continued to pick up, sparked by strong vehicle sales and some improvements in tourism and retail sectors.
But many Districts noted a slowing pace of growth in these areas, and total spending was still far below pre-pandemic levels. Commercial construction was down widely, and commercial real estate remained in contraction. Conversely, residential construction was a bright spot, showing growth and resilience in many Districts. Residential real estate sales were also notably higher, with prices continuing to rise along with demand and a shortage of inventory. In the banking sector, overall loan demand increased slightly, led by solid residential mortgage activity. Agricultural conditions continued to suffer from low prices, and energy activity was subdued at low levels, with little expectation of near-term improvement for either sector. While the overall outlook among contacts was modestly optimistic, a few Districts noted some pessimism. Continued uncertainty and volatility related to the pandemic, and its negative effect on consumer and business activity, was a theme echoed across the country.
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Source: federalreserve.gov
Beige Book-September 2, 2020
September 2, 2020--Overall Economic Activity
Economic activity increased among most Districts, but gains were generally modest and activity remained well below levels prior to the COVID-19 pandemic. Manufacturing rose in most Districts, which coincided with increased activity at ports and among transportation and distribution firms. Consumer spending continued to pick up, sparked by strong vehicle sales and some improvements in tourism and retail sectors.
But many Districts noted a slowing pace of growth in these areas, and total spending was still far below pre-pandemic levels. Commercial construction was down widely, and commercial real estate remained in contraction. Conversely, residential construction was a bright spot, showing growth and resilience in many Districts. Residential real estate sales were also notably higher, with prices continuing to rise along with demand and a shortage of inventory. In the banking sector, overall loan demand increased slightly, led by solid residential mortgage activity. Agricultural conditions continued to suffer from low prices, and energy activity was subdued at low levels, with little expectation of near-term improvement for either sector. While the overall outlook among contacts was modestly optimistic, a few Districts noted some pessimism. Continued uncertainty and volatility related to the pandemic, and its negative effect on consumer and business activity, was a theme echoed across the country.
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Source: federalreserve.gov
Robinhood Faces SEC Probe for Not Disclosing Deals With High-Speed Traders
September 2, 2020--Company could have to pay a fine exceeding $10 million if it agrees to settle
Robinhood Markets Inc. faces a civil fraud investigation over its early failure to fully disclose its practice of selling clients' orders to high-speed trading firms, people familiar with the matter said.
The investigation is at an advanced stage and the company could have to pay a fine exceeding $10 million if it agrees to settle the Securities and Exchange Commission probe, one of the people said. A deal, however, is unlikely to be announced this month, the people said, and the two sides haven't formally negotiated a ...
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Source: wsj.com
TrueShares Structured Outcome September ETF (Ticker: SEPZ) has launched September 1st.
September 1, 2020--SEPZ is expected to provide an 8-12% downside buffer (with the advisor targeting 10%) on the first losses of the S&P 500 Price Index over a 12-month investment period.
In addition to the downside buffer, SEPZ will seek upside returns similar to the S&P 500 Price Index.
As of 9/1/2020, the estimated upside market participation rate range is 87-89%.
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.**
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Source: true-shares.com