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Treasury Continues Local Outreach on Recovery Act's Build American Bond Program
Build America Bonds Provide $55 Billion Nationally
U.S. Treasurer Hosts Webinars with State Treasurers, Local Officials
December 16, 2009----As part of the Obama Administration's effort to accelerate the implementation of American Recovery and Reinvestment Act (Recovery Act) programs, U.S. Treasurer Rosie Rios this week began a series of webinars to help raise awareness, discuss benefits, and solicit feedback on maximizing the effectiveness of the Recovery Act's bond programs. New data also released by Treasury this week show the Build America Bonds program already providing $55 billion in low-cost borrowing nationwide.
"During a time when state and local budgets have been drastically scaled back, the Recovery Act's bond programs provide much needed access to financing and low-cost borrowing," said Rios. "Build America Bonds are a little known, but successful tool that have already helped hundreds of communities fund the development of schools, hospitals, and other public projects. Through continued outreach efforts, Treasury aims to provide an accessible forum for officials to learn how these bonds can help revitalize their communities as well."
This week, Treasury hosted two webinars for local officials responsible for public financing plans. Webinar participants included treasurers from 18 states and dozens of municipal and county level officials responsible for program implementation, including members of the National Association of State Treasurers, National Association of State Auditors, and National Association of State Comptrollers. Treasury plans to continue its outreach effort to include mayors, transit authorities, and other groups that could benefit from issuing Build America Bonds.
A new financing tool created by the American Recovery and Reinvestment Act (Recovery Act), Build America Bonds allow state and local government to obtain much needed funding at lower borrowing costs. Under the Build America Bonds program, the Treasury Department makes a direct payment to the state or local governmental issuer in an amount equal to 35 percent of the interest payment on the Build America Bonds. Since the program was launched on April 3, 2009:
There have been $55 billion in Build America Bond issuances; Build America Bonds now constitute about 21.3 percent of the municipal bonds market; and There have been a total of 650 separate issues of Build American Bonds by local or state governments in 43 states.
A complete list of issuances organized by state is available here. Additional updated data is available here. First Ever China Energy ETF (CHIE) starts trading on the NYSE Arca China is expected to become the world’s biggest energy consumer by 2010, according to the International Energy Agency (IEA), with energy use expected to more than double from 2005 to 2030. The agency notes that “as China becomes richer, its citizens are using more energy to run their offices and factories, and buying more electrical appliances and cars.” China is also the leading producer of energy from renewable sources, according to the Climate Group, and “is on the way to overtaking developed countries in creating clean technologies.”
“With the rapid expansion of China’s middle class, its energy consumption will necessarily mount. The China Energy ETF affords investors efficient access to this growth while tapping into China’s increasing leadership in alternative energy,” said Bruno del Ama, CEO of Global X Management.
The fund is the latest launch in the family of China sector ETFs offered by Global X Funds, joining the China Consumer ETF (ticker: CHIQ), China Financials ETF (ticker: CHIX), China Industrials ETF (ticker: CHII), and China Technology ETF (ticker: CHIB), all trading on the NYSE Arca; the upcoming China Materials ETF (ticker: CHIM) is not yet available for purchase. All funds have a 0.65% expense ratio. Hearing on Covered Bond Legislation The legislation would adopt a statutory structure for covered bonds issued by U.S. financial institutions. First Christian ETFs Launched to Appeal to Religious-Minded Investors
“We created these funds to meet the needs of investors who want to participate in the potential of the stock market, yet be good stewards of their money,” said Thompson S. Phillips Jr., President of FaithShares. “As an ETF, each of our funds will include 100 stocks of large, well-known companies but specifically exclude those considered to be ’objectionable industries’ by a specific denomination. Our funds are the first Christian ETFs in the market.”
The FaithShares Funds allow individuals and groups to invest in accordance with the tenets of their faith in one security, while still getting exposure to the broad market. The portfolios will be screened to exclude companies that benefit from gambling, alcohol, tobacco, pornography, weaponry and other activities that are included in each denomination’s published criteria.
“We did a great deal of research on the covenants of the various denominations in designing these funds,” said Garrett Stevens, CEO and portfolio manager. “The Christian Values Fund is the most conservative and we feel it answers the needs of non-denominational church members and other denominations not specifically represented by our other ETFs.”
Annually, FaithShares Advisors, the management company of FaithShares, will give a minimum of ten percent of its net income to a ministry associated with the respective denominations.
The funds will be rebalanced annually and offer complete transparency about their holdings. ETFs offer an inexpensive way to invest in the market.
From 2000 to 2006, assets in other faith-based investments have grown seven-fold underscoring the public’s interest in investing according to their beliefs.
Investors can purchase the funds through their investment advisor or discount broker. Treasury International Capital Data for October
* U.S. residents purchased a net $22.7 billion of long-term foreign securities.
Net foreign acquisition of long-term securities, taking into account adjustments, is estimated to have been $8.3 billion.
Foreign holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities decreased $43.9 billion. Foreign holdings of Treasury bills decreased $38.3 billion.
Banks' own net dollar-denominated liabilities to foreign residents increased $21.6 billion.
Monthly net TIC flows were negative $13.9 billion. Of this, net foreign private flows were negative $32.1 billion, and net foreign official flows were $18.2 billion. FINRA Foundation Releases Inaugural Financial Capability Survey By exploring how people manage their resources and how they make financial decisions, this national survey allows the FINRA Foundation to extend the reach of financial education programs in communities across the country. The FINRA Foundation today announced a new partnership with United Way Worldwide to reach low- and middle-income Americans and also announced a significant expansion of its Smart investing@your library® partnership with the American Library Association, which reaches 23 million people in 26 states. In total, the FINRA Foundation is funding 31 new grants to help community-based organizations provide effective and unbiased financial education. The release of this survey comes at a critical moment for many American families. For example, the survey found that: only 41 percent of parents have set aside money for their children's college education;
the majority of Americans do not have a "rainy day" fund for unanticipated financial emergencies and are not adequately preparing for their children's college education and their own retirement;
more than one in five survey respondents use high-cost, alternative borrowing methods, such as payday loans or pawn shops; and
fewer than half (46 percent) of those surveyed correctly answered two basic questions about how interest rates and inflation work. "These survey results highlight just how important it is to give people the information and resources they need to make sound financial decisions. The FINRA Foundation will use this important information to help focus its efforts to address the financial education needs of underserved Americans," said FINRA Foundation Chairman Rick Ketchum.
An executive summary, as well as a longer survey report, is available on the FINRA Foundation Web site, www.finrafoundation.org/capability. The Foundation will also make the survey data available to the public and to researchers. The National Survey is one of three linked surveys that comprise the National Financial Capability Study. In early 2010, the FINRA Foundation will release the other two components: a State-by-State Survey and a Military Survey View the National Survey—Executive Summary National Survey—Full Report and Methodology Deutsche Bank to target equities
The performance of Mr Jain’s global markets businesses is central to Deutsche Bank’s goal – outlined this week – of making record pre-tax profits of €10bn ($14.5bn) from its operating businesses in 2011. New Haven pension fund invests USD8m in IndexIQ SMA vehicle
This allocation represents the first time the City of New Haven’s Employee Retirement Fund has invested in a hedge fund-like strategy. Alps files with the SEC CME Group Launches Credit Default Swaps Initiative - Begins Clearing Trades
"BlackRock will clear CDS based on the segregation and portability of customer collateral and the operational benefits provided by CME," said Richard Prager, Global Head of Fixed Income Trading, BlackRock. "We are pleased with the progress made with respect to ensuring transparency by leveraging the CME's proven risk management practices. We are excited that CME has launched its CDS clearing service and look forward to further participation."
"Our firm supports the development of clearing solutions which address the primary concerns of the investor community, which are the reduction of counterparty risk and development of regulatory regimes which protect customer margin and allow for trade portability following a dealer default," said Ted MacDonald, Treasurer of the D. E. Shaw group. "In this regard, we welcome the ability of our dealer counterparties to clear CDS transactions through a clearinghouse with both significant capital backing up trades and dedicated reserves which could be accessed by the other dealers should a clearing member default." The largest wind farm ever built coming to US
Its power production will exceed that of the current world's largest wind farm located in Texas. Sprott Asset Management files with the SEC Claymore Gold Bullion Trust converts to ETF in January
In the Claymore prospectus, the closed-ender was to convert to an ETF after Nov. 28 if its units traded at a discount to net asset value (NAV) for 10 consecutive days. That ended last Friday. Morningstar Reports U.S. Mutual Fund and ETF Asset Flows Through November 2009 Although bond funds still represent the majority of November's inflows, investors now appear to be easing up on the fixed-income peddle, as November taxable and municipal-bond inflows dropped to $33.5 billion.
Among the equity funds, investors continued to favor foreign-equity funds over domestic-equity funds. Net flows were negative for domestic-stock funds, while foreign-equity funds received more than $5.4 billion in assets.
For five months in a row and for the eighth time in 2009, Vanguard's combined open-end and ETF monthly flows exceeded $10 billion. Fidelity saw net outflows for the second month in a row.
Of the $8.8 billion in inflows into TCW fixed-income funds this year, $8.4 billion (96% of fixed-income flows) went to the TCW Total Return Bond Fund, which was previously managed by the recently ousted Jeffrey Gundlach.
Additional highlights from the report on ETFs: November marked the busiest month so far in 2009 for ETF providers in terms of new product launches with 24 new ETFs introduced to the market, bringing the year-to-date total to 116 new ETF launches.
Following another strong month for emerging-markets ETFs, the international-equity category brought in $4.0 billion, the most among the broad asset classes.
ETF investors made bullish bets on the dollar, funneling $1.1 billion into currency ETFs in November and $2.3 billion year to date.
Investors were placing bearish bets last month, as evidenced by the $1.0 billion in net inflows for inverse ETFs for a year-to-date total of $19.9 billion. World's First Financial Exchange Focused on Intellectual Property Taps Former President & COO of Chicago Climate Exchange to Take the Helm The Intellectual Property Exchange International provides an innovative approach to the commercialization of intellectual property rights or “IP”. IPXI will leverage models used by other markets but instead of trading traditional commodities or equities, members, individual inventors, universities and corporations will trade contract rights in patents, trademarks and copyrights.
Dr. James Angel, Ph.D., of Georgetown University, who specializes in the structure and regulation of financial markets around the world, observes the great similarities between the launch of CCX and IPXI. "Both CCX and IPXI are pioneers in building new markets bringing price discovery and efficiency to large untapped asset classes. Pannekoek's experience in building a new exchange from scratch makes him the perfect candidate for IPXI."
Leslie Rosenthal, former Chairman of the Chicago Board of Trade (CBOT) and Managing Member of Rosenthal Collins Group, a leading Chicago-based Futures Commission Merchant adds, "Gerard is the perfect executive to lead the growth of IPXI. He has a proven track record in successfully developing and growing exchange and trading businesses, leading them to successful sale or public listing."
Intangible assets represent approximately 75% of market value, according to research conducted by Ocean Tomo, LLC, the Chicago based Intellectual Capital Merchant Banc® firm and co-founder of IPXI.
“Our history of valuing IP, pioneering the most advanced web-based patent data ratings and analysis platform, creating the Ocean Tomo 300(R) Patent Index (NYSE: OTPAT) and public auction marketplace for IP assets convinced us to create IPXI”, explains James E. Malackowski, the firm's Chief Executive. Mr. Malackowski will remain Chairman of IPXI Holdings.
IPXI is ahead of schedule having completed its' three year development cycle early. “I am truly excited about joining the team to accelerate the sales effort” explains Pannekoek. With trading targeted to begin in the first quarter of 2010, IPXI already presents four initial products:
Unit License Rights™ Contracts – ULRs enable holders of intellectual property to more efficiently monetize patents and other intellectual property brought to the marketplace through non-exclusive licensing. ULRs transform traditional private licensing of technology into an exchange-traded product, allowing for market transparency, smooth technology transfers, and increased cost efficiencies. According to Pannekoek, ULRs are effectively “an IPO for inventors, for both large corporate R&D groups as well as individuals”.
Enhanced Market Indexes – These provide the investment community access to IP-enhanced exchange traded funds (ETFs) based on popular stock indexes. By more heavily weighting companies that have strong IP, these ETFs provide much needed benchmarks and new portfolio options for financial and corporate communities.
Patent Value Indexes – PVIs track the performance of patented technologies owned by public and private companies, as well as the patents in a particular technology space, industry, country or region.
Qualified Equities – These provide a valuable measure of a company's success as an innovator within its field. Companies seeking qualification undergo a rigorous certification process, including an independent assessment of the company's IP value.
IPXI allows owners of IP to more efficiently monetize their assets while providing investors access to a new universe of trading, investment and arbitrage opportunities.
December 16, 2009-New York-based asset manager Global X Management Company today launched the Global X China Energy ETF (NYSE Arca: CHIE), the first ETF offering targeted access to the China Energy sector. CHIE is the latest addition to the comprehensive family of China sector ETFs offered by Global X Funds.
The Global X China Energy ETF seeks to replicate the S-BOX China Energy Index, which is designed to reflect the performance of the energy sector in China. As of November 30, 2009, the Oil and Gas sector represents 42% of the index, Alternative Energy 23%, Coal 15%, Electric 14% and Energy Equipment & Services 5%. The largest index components were PetroChina, CNOOC, China Shenhua Energy and China Petroleum & Chemical.
December 15, 2009--The Financial Services Committee of the U.S. House of Representatives held a hearing on covered bonds on December 15, 2009. The Committee heard testimony on proposed legislation introduced by Representative Scott Garrett (R-NJ).
view the legislation
December 15, 2009--FaithShares Trust is pleased to announce today two additional exchange-traded funds (ETFs), to join the recently launched FaithShares Catholic Values Fund (FCV), FaithShares Christian Values Fund (FOC) and FaithShares Methodist Values Fund (FMV), thus completing the initial family of funds.
The securities held in these funds, FaithShares Baptist Values Fund (FZB) and FaithShares Lutheran Values Fund (FKL) are similarly tailored to both denomination’s teachings and recommendations for investing. FaithShares Advisors, LLC worked with the FTSE Group, the leading global index provider, and KLD Research & Analytics, a leading provider of environmental, social and governance (ESG) research and indexes, to create a series of custom indexes on which the funds are based.
December 15, 2009--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for October 2009. The next release, which will report on data for November 2009, is scheduled for January 19, 2010.
Net foreign purchases of long-term securities were $20.7 billion.
* Net foreign purchases of long-term U.S. securities were $43.4 billion. Of this, net purchases by private foreign investors were $28.8 billion, and net purchases by foreign official institutions were $14.6 billion.
December 15, 2009--The FINRA Investor Education Foundation today released survey results that measure the financial capabilities of American adults and reveal in detail how Americans save, borrow and plan for their financial future. The National Financial Capability Survey, the first of its kind in the United States, was developed in consultation with the U.S. Department of the Treasury and the President's Advisory Council on Financial Literacy.
In an event today at the U.S. Treasury, U.S. Secretary of the Treasury Tim Geithner, U.S. Secretary of Education Arne Duncan and FINRA CEO and FINRA Foundation Chairman Rick Ketchum all met with financial literacy and community leaders as well local high school students to announce the results.
December 15, 2009--Deutsche Bank said it would fight for a greater share of equities and commodities trading as part of its recovery from the financial crisis.
Anshu Jain, who heads the parts of the corporate banking and securities division that usually produce a large share of the bank’s profits, on Tuesday said improving the bank’s standing in commodities as well as US and Asian equities, were two “critical bets” by Deutsche Bank.
September 15, 2009-The City of New Haven’s Employee Retirement Fund has invested USD8m in IndexIQ’s multi-strategy hedge fund replication separately managed account vehicle.
The IQ Hedge Multi-Strategy SMA is designed to be liquid, transparent and low cost.
December 15, 2009-Alps has filed a prospetus with the SEC for
Jefferies | TR/J CRB Wildcatters Exploration & Production Equity ETF (WCAT)
Jefferies | TR/J CRB Natural Gas Equity ETF (NATG)
view filing
December 15, 2009--CME Group, the world's largest and most diverse derivatives marketplace, today announced that with the necessary regulatory approvals in place, it has begun clearing credit default swaps (CDS) through CME Clearing. On its first day of clearing, CME Group cleared both dealer to customer and interdealer CDS trades.
"Working closely with market participants on both the buy side and sell side we have begun to successfully clear CDS trades," said Laurent Paulhac, Managing Director, OTC Products and Services, CME Group. "We believe our solution is the most comprehensive credit default swap solution available and brings together a broad range of participants who support our offering."
December 15, 2009--Wind farm project
Energy giant GE announced this week that it has been awarded the $1.4 billion contract to supply wind turbines and provide services for an 845MW wind farm project in Oregon, that will become the largest ever constructed.
Independent power producer Caithness Energy will oversee the development of the project, called Shepherds Flat, and has received the majority of the necessary government permits to operate and is all set to be built.
December 12, 2009--Sprott Asset Management has filed with the SEC for the Sprott Physical Gold Trust.
The Trust intends to file an application to list its units on the New York Stock Exchange Arca, to which we will refer as the NYSE Arca, and the Toronto Stock Exchange, to which we will refer as the TSX, under the symbols "PHYS" and "PHY", respectively. Listing on the NYSE Arca and the TSX is subject to the Trust fulfilling all of the requirements of the NYSE Arca and the TSX, respectively.
December 14, 2009--Claymore Gold Bullion Trust (CGL.UN-T10.110.111.10%) will soon end its short life as a closed-end fund, and begin a new chapter as an exchange-traded fund (ETF) next month.
It will be the first Canadian-domiciled gold bullion ETF traded on the Toronto Stock Exchange. Currently, the U.S.-based gold bullion ETF, iShares COMEX Gold Trust (IGT-T116.820.700.60%), is interlisted in Canada.
December 14, 2009--Morningstar, Inc. a leading provider of independent investment research, today reported U.S. mutual fund and exchange-traded fund asset flows year-to-date through November. Total inflows into U.S. mutual funds reached $350.4 billion, with $34.6 billion of these assets added in November. ETFs had $14.0 billion in inflows in November, marking the ninth consecutive month of net inflows for the industry, bringing the year-to-date total to $77.8 billion.
Additional highlights from the report on mutual funds:
December 14, 2009--The Intellectual Property Exchange International (www.IPXI.com), the World's First Financial Exchange based on Intellectual Property, announced today that Gerard J. Pannekoek has joined the company as President and Chief Executive Officer of IPXI Holdings, LLC, parent to IPXI.
In his previous position as President and COO of the Chicago Climate Exchange (CCX), Mr. Pannekoek was tasked to bring to market the world's first multi-national and multi-sector exchange for reducing and trading greenhouse gas emissions. In less than twelve months, he established the firm's infrastructure and trading operations ultimately leading to a successful initial public offering.
