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Fed Ramps Up Auto Bond Buying With Industry Starting to Recover
August 11. 2020--Fed bought more in the sector than any other, per CreditSights
'There's the math and then there's the mission,' investor says
The Federal Reserve's historic foray into the credit market has benefitted auto companies the most, supporting an industry that's borrowed its way through the pandemic and is starting to show signs of recovery.
The central bank can only buy shorter-dated debt of companies that mostly employ Americans, making notes linked to car manufacturers prime candidates.
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Source: bloomberg.com
SEC Charges Interactive Brokers With Repeatedly Failing to File Suspicious Activity Reports
August 11, 2020-August 10, 2020--The Securities and Exchange Commission today announced that Interactive Brokers LLC will pay an $11.5 million penalty to settle charges it repeatedly failed to file Suspicious Activity Reports (SARs) for U.S. microcap securities trades it executed on behalf of its customers.
In parallel actions, the Financial Industry Regulatory Authority (FINRA) and the Commodity Futures Trading Commission (CFTC) today announced settlements with Interactive Brokers related to anti-money laundering failures in which the registered broker-dealer agreed to pay penalties of $15 million and $11.5 million, respectively, for a total of $38 million in penalties paid to the three agencies.
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Source: sec.gov
CBO-Monthly Budget Review for July 2020
August 10, 2020--August 10, 2020--The federal budget deficit in July 2020 was $61 billion, CBO estimates, compared with a deficit of $120 billion in the same month last year. That decrease, following three months of substantially larger deficits, occurred because payment deadlines for individual and corporate income taxes were delayed from April and June to July, so tax receipts were unusually large this July.
All told, for the period from April through July, revenues were down 10 percent from last year's amounts.
A shift in the timing of certain payments had the opposite effect-increasing the deficit in July. Federal payments totaling $57 billion were made in July rather than August because August 1 fell on a weekend; no such shift occurred in July 2019.
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Source: CBO (congressional Budget Office)
IMF Staff County Reports-United States: Financial System Stability Assessment
August 10, 2020--Summary:
Much of the Financial Sector Assessment Program (FSAP) work was conducted prior to the COVID-19 pandemic. The lockdown of the economy has led to a massive growth shock. Following the precipitous fall, risk asset prices have rebounded, and financial conditions eased.
The vulnerability analysis has been updated and largely captures this shock. Recommendations on strengthening policy and institutional frameworks remain pertinent. The approach to financial regulation and supervision was risk-focused given the high degree of compliance against international standards assessed during the 2015 FSAP.
view the IMF Staff County Reports-United States: Financial System Stability Assessment
Source: IMF
Interested in Social-Impact Investing? Here's How to Start
August 9, 2020--Investments that support racial justice and help community development are becoming more accessible
The pandemic and other recent events that point to racial injustice have made many investors think about how they can make a difference with their pocketbooks.
Certainly, large corporations and wealthy individuals have long been able to influence change through foundations and charitable gifts. For the average person, investment options to directly support social goals are more limited. But this could change as demand for such opportunities grows.
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Source: wsj.com
Top 10 institutional investors fuel market volatility, study finds
August 8, 2020--Researchers say concentration of ownership adds to mispricings embedded in shares
BlackRock, Vanguard, State Street, Fidelity and Capital Group are driving up equity market volatility and fuelling mispricing in company stocks, according to an analysis that raises fresh questions over the regulatory oversight of the largest asset managers.
Global regulators have wrestled for more than a decade over whether large asset managers should be classified alongside big banks as systemically important financial institutions. Tighter rules would drive up running costs and cut the profits of these businesses.
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Source: FT.com
SEC committee which backed ESG disclosures in row over nominations
August 7, 2020--New nominations procedure will limit committee expertise in sustainability-related areas, says Commissioner
The US Securities and Exchange Commission (SEC) is revamping the nominations process for an independent advisory committee which previously broke ranks with the regulator by supporting standardised ESG corporate disclosures and proxy advisors.
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Source: responsible-investor.com
U.S. Treasury to continue shift to longer-dated debt
August 6, 2020-- The U.S. Treasury Department said on Wednesday it plans to continue a shift to longer-term notes and bonds as it issues debt in coming quarters to fund measures to offset the impact of the COVID-19 epidemic.
The Treasury expects its borrowing needs to moderate but remain elevated according to a statement by Brian Smith, its deputy assistant secretary for federal finance, depending partly on what additional legislation is put in place.
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Source: reuters.com
Amazon and Tesla Take Off as Small Investors Embrace Fractional-Share Trading
August 6, 2020--Proponents say it has helped democratize access to the stock market, while others warn many investors could lose money
Trading slivers of individual shares has become a fervent pursuit for thousands of individual investors, amplifying the 2020 rise of pricey yet popular stocks like Amazon.com Inc. and Tesla Inc.
Fidelity Investments, which rolled out fractional trading to customers in January and February, says more than 340,000 of its accounts have placed a fractional trade, in which the customer buys or sells less than an entire share. Interactive Brokers Group Inc., another online brokerage, says around 117,000 users have enabled fractional...
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Source: wsj.com
The Robinhood Craze Is Now Moving Stocks Everywhere
August 6, 2020--Low savings rate and social distancing drive people to trade
'Trading has become the talk of the town':Interactive Brokers
Dirt cheap, automated on apps and championed by newbie traders who brandish their broker balances on Twitter, the stuck-at-home trading phenomenon, born in the USA, has become a global craze.
Retail's tentacles are everywhere. In the U.K, tax-free savings account openings at Interactive Investor jumped 238% for investors between 25 and 34 years of age in April and May. In India, newly minted day traders are crowing after falling in love with stocks that trade below 7 U.S. cents apiece and riding most of them straight up. Small-time investors in Moscow bought almost twice as many Russian shares in June than in April.
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Source: bloomberg.com
