Americas ETP News
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CFTC.gov Commitments of Traders Reports Update
February 15, 2013--The current reports for the week of February 12, 2013 are now available.
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Source: CFTC.gov
BNY Mellon ADR Index Monthly Performance-January 2013 Update
February 15, 2013--The BNY Mellon ADR Index Monthly Performance-January 2013 Update has been publiched and is now available for review.
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Source: BNY Mellon
Treasury International Capital Data For December
February 15, 2013--The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for December 2012. The next release, which will report on data for January 2013, is scheduled for March 15, 2013.
The sum total in December of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a monthly net TIC inflow of $25.2 billion. Of this, net foreign private inflows were $26.1 billion, and net foreign official inflows were negative $0.9 billion.
Foreign residents increased their holdings of long-term U.S. securities in December – net purchases were $76.5 billion. Net purchases by private foreign investors were $67.3 billion, and net purchases by foreign official institutions were $9.1 billion.
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Source: US Department of the Treasury
Mandatory clearing for OTC swaps to hit more than 200 funds
February 15, 2013--Nearly 80 fund managers with more than 200 funds will be required to clear their over-the-counter swaps starting March 11,
Lukas Becker and Matt Cameron write. Up to one-third of the entities facing mandatory clearing are not prepared.
Source: FIA SmartBrief
IMF Country Report-Canada
February 15, 2013--KEY ISSUES
Context.
Growth slowed in 2012, as fiscal consolidation and high levels of debt weighed on households consumption, while external headwinds depressed exports and business spending. Growth is expected to accelerate again from mid 2013 as the global economy
improves, but the balance of risks remains tilted to the downside as concerns linger over the external environment and the unwinding of domestic imbalances.
Policy mix. The return to more neutral interest rates should be delayed until there are signs of a sustainable acceleration in growth. There is some space to cut rates if activity
were to weaken significantly. The pace of fiscal consolidation is appropriate under the
baseline scenario. Automatic stabilizers should be allowed to operate if growth disappoints, while temporary fiscal stimulus could be considered in the event of a large
adverse shock, especially at the federal level. It will be important to continue to address long-term spending pressures from population ageing and increasing health-care costs.
view IMF Country Report-Canada-Canada: 2012 Article IV Consultation
Source: IMF
IMF-Canada: Selected Issues
February 15, 2013--I. ASSESSING THE IMPACT OF HIGH HOUSEHOLD DEBT ON ECONOMIC VOLATILITY IN
CANADA1
A. Introduction
1. To what extent is the increase in Canada's household leverage a matter of
concern? Other advanced economies (for example, Australia, Norway, Sweden, and the United Kingdom), experienced similar or even larger increases in household debt-to-income ratios during the last decade and faced very different outcomes during the Great Recession.
In principle, it is not immediately
obvious why higher gross household debt should be a problem, especially if the increase in leverage is matched by higher gross asset positions and an
increase in net wealth (IMF, 2012,
and Dynan, 2012). And there is no
clear threshold above which
household leverage can be defined
"excessive". Moreover, as
discussed in the staff report, while
house prices seem somewhat
overvalued at the national level in
Canada (Box 1), the risk of a severe housing bust is reduced by the strong balance sheet and conservative lending practices of Canadian banks, the recourse nature of mortgage loans, and
the broad scope of government-backed mortgage insurance.
view IMF paper-Canada: Selected Issues
Source: IMF
FINRA Issues New Investor Alert: Duration-What an Interest Rate Hike Could Do to Your Bond Portfolio
February 14, 2013--WASHINGTON—The Financial Industry Regulatory Authority (FINRA) issued a new Investor Alert called Duration-What an Interest Rate Hike Could Do to Your Bond Portfolio. FINRA is issuing this Alert to help investors understand the importance of duration risk.
Although stated in years, duration is not simply a measure of time. The duration of a bond or a bond fund also signals how much the price of a bond investment is likely to fluctuate when interest rates move up or down.
"With interest rates hovering near all-time lows, investors should make sure they know their duration numbers. Whether investors own individual bonds or bond funds, they need to understand that outstanding bonds with a low interest rate and high duration may experience significant price drops if interest rates rise," said Gerri Walsh, FINRA Vice President of Investor Education.
view the alert-Duration—What an Interest Rate Hike Could Do to Your Bond Portfolio
Source: FINRA
BlackRock to offer ETFs with maturity dates, like bonds
February 13, 2013--BlackRock, the world's largest manager of exchange-traded funds, will soon release a new series of fixed-income funds that mature after a set number of years, like ordinary bonds.
The new ETFs are designed to simplify the task of institutional money managers like bank treasurers, who currently must juggle hundreds or even thousands of distinct bond issues in their portfolios, BlackRock President Robert Kapito said on Wednesday.
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Source: Reuters
Deutsche Bank-Synthetic Equity & Index Strategy-North America-US ETF Market Weekly Review - Markets and $1.9bn Outflows removed $4.3bn from ETP AUM
February 13, 2013--Market and Net Cash Flows Review
Markets were mixed during last week. The US (S&P 500) edged higher by 0.31%; while, outside the US, the MSCI EAFE (in USD) and the MSCI EM (USD) dropped by 1.44% and 1.10%, respectively.
Moving on to other asset classes, the 10Y US Treasury Yield fell by 5 bps last week; while the DB Liquid Commodity Index was down by 0.27%. Similarly, the Agriculture sector (DB Diversified Agriculture Index), WTI Crude Oil and Silver prices retreated by 2.86%, 2.10%, and 1.30%, respectively. Last but not least, Volatility (VIX) rose by 0.93% during the same period.
The total US ETP flows from all products registered $1.9bn (-0.1% of AUM) of outflows during last week vs. $6.82bn (+0.5%) of inflows the previous week, setting the YTD weekly flows average at +$5.0bn (+$29.94bn YTD in total cash flows).
Equity, Fixed Income, and Commodity ETPs experienced flows of -$2.16bn (-0.21%), +$0.09bn (0.03%), +$0.13bn (0.11%) last week vs. +$6.9bn (0.68%), -$0.26bn (-0.10%), +$0.07bn (0.06%) in the previous week, respectively.
Among US sectors, Consumer Staples (+$0.16bn, +1.92%) and Industrials (+$0.13bn, + 2%) received the top inflows, while Materials (-$0.04bn, -0.4%) and Healthcare (-$0.04bn, -0.25%) experienced the largest outflows.
Within Equity ETPs, Developed non-US country products had the largest inflows (+$0.7bn, +2.5%), while Large Cap products had the largest outflows of $6.7bn (-2.8%). Within Fixed Income ETPs, Corporate products had the largest inflows (+$0.2bn, +0.2%), while Sovereign (-$0.3bn, -0.5%) products experienced the largest outflow. Top 3 ETPs & ETNs by inflows: DXJ (+$0.7bn), IWM (+$0.4bn), VIG (+$0.4bn)Top 3 ETPs & ETNs by outflows: SPY (-$4.7bn), QQQ (-$1.8bn), TIP (-$0.7bn)
New Launch Calendar: No new listings
No new listings during last week.
Turnover Review: Floor activity increased by 2%
Total weekly turnover increased by 1.6% to $278.45bn vs. $274.20bn from the previous week. Last week's turnover level was 3.3% higher than last year's weekly average. Equity ETPs turnover increased by $10.7bn (+4.6%); meanwhile, Fixed Income and Commodity ETPs turnover decreased by $3.5bn (-14.5%) and $3.1bn (-21.8%), respectively.
Assets under Management (AUM) Review: US ETPs AUM dropped by $4.3bn
US ETP assets dropped by $4.3bn (-0.3%) totaling $1.412 trillion at the end of the week. As of last Friday, US ETPs have accumulated an asset growth of 5.9% YTD. Assets for Equity, Fixed Income and Commodity ETPs moved -$4.4bn, +$0.1bn, -$7m during last week, respectively.
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Source: Deutsche Bank - Synthetic Equity & Index Strategy - North America
Mexican Exchange to HFT: Bring Us Your Business.
February 13, 2013--Mexico's main stock exchange wants more high-frequency trading on its market, seeing the activity as a way to drive growth and more listings, chairman of the Bolsa Mexicana de Valores said Wednesday.
The exchange spent about $20 million in the past two years to upgrade its technology in the hopes of bringing in more of these types of traders. The exchange can handle about 3.9 million trades a day, up from 75,000 a day in 2005.
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Source: Wall Street Journal
