Global ETF News Older than One Year
Climate change and artificial intelligence seen as risks to investment asset allocation, finds new report by BNY Mellon Investment Management and CREATE-Research
September 16, 2019--Research outlines impact on asset allocation as a result of these 'supertanker' trends.
Two secular forces or 'supertanker' trends, climate change and artificial intelligence (AI), are reshaping the future of investing, finds a new research study launched today by BNY Mellon Investment Management and CREATE-Research.
89% of the institutional investors ("investors" or "respondents"), with combined assets under management of approximately $12.75 trillion, that took part in extensive and structured interviews as part of the study regard the two supertanker trends as investment risks.
view the Future 2024: Future proofing your asset allocation in the age of mega trends
Source: BNY Mellon
IMF Working Paper-A Guide to Sovereign Debt Data
September 13, 2019--Summary:
The last decade or so has seen a mushrooming of new sovereign debt databases covering long time spans for several countries. This represents an important breakthrough for economists who have long sought to, but been unable to tackle, first-order questions such as why countries have differential debt tolerance, and how debt levels affect the scope for countercyclical policy in recessions and financial crises.
This paper backdrops these recent data efforts, identifying both the key innovations, as well as caveats that users should be aware of. A Directory of existing publicly-available sovereign debt databases, featuring compilations by institutions and individual researchers, is also included.
view the IMF Working Paper-A Guide to Sovereign Debt Data
Source: IMF
Global disinvestment from fossil fuels tops $11trn
September 11, 2019--Global disinvestment from fossil fuels has crossed the $11trn mark-a massive leap from committed disinvestment of just $52m in 2014.
This represents around 16% of global investment in fossil fuels.
The disinvestment figure was announced at briefing in Cape Town on Monday before the start of an international summit, 'Financing the Future', organised by the global fossil free movement, a collaboration of non-government organisations campaigning for banks, pension funds, insurers and other large institutions to disinvest from fossil fuels.
Source: FIN24
IMF-Staff Discussion Note-A Capital Market Union For Europe
September 10, 2019--Summary:
This note weighs the merits of a capital market union (CMU) for Europe, identifies major obstacles in its path, and recommends a set of carefully targeted policy actions. European capital markets are relatively small, resulting in strong bank-dependence, and are split sharply along national lines. Results include an uneven playing field in terms of corporate funding costs, the rationing out of collateral-constrained firms, and limited shock absorption.
The benefits of integration center on expanding financial choice, ultimately to support capital formation and resilience. Capital market development and integration would support a healthy diversity in European finance. Proceeding methodically, the note identifies three key barriers to greater capital market integration in Europe: transparency, regulatory quality, and insolvency practices. Based on these findings, the note urges three policy priorities, focused on the three barriers. There is no roadblock-such steps should prove feasible without a new grand bargain.
view the IMF-Staff Discussion Note-A Capital Market Union For Europe
Source: IMF
New Index Tracks Trade Uncertainty Across the Globe
September 9, 2019--Rising trade uncertainty is cited as a driving factor for "sluggish global growth" in the current issue of the IMF's World Economic Outlook, which describes the state of the world economy.
But how is trade uncertainty measured? How has it evolved over time? Are changes in trade uncertainty confined to specific countries and regions of the world?
A new measure of trade uncertainty finds that by this measure of uncertainty it is surging, and not just in the United States and China, where trade tensions are highest, but also in many other countries.
Source: IMF
Platforms' best-buy active funds underperform index trackers
September 6, 2019--Questions raised over brokers' recommendations in wake of Woodford fund debacle
Source: FT.com
Risk--free bonds threaten to be return-free, too
September 6, 2019--Investors should target the glaring mismatch between equity and debt pricing
Source: FT.com
A Role for Financial and Monetary Policies in Climate Change Mitigation
September 4, 2019--July 2019 was the hottest month ever recorded on earth, with countries across the world experiencing record-breaking temperatures. A prolonged drought is affecting millions of people in East Africa, and in August 2019 Greenland lost 12.5 billion tons of ice in one day.
A review of the literature by IMF staff aims to spur discussion of what policies to mitigate climate change could or should include. The review suggests that, while fiscal tools are first in line, they need to be complemented by financial policy tools such as financial regulation, financial governance, and policies to enhance financial infrastructure and markets, and by monetary policy.
Source: IMF
IMF Working Paper-Macroeconomic and Financial Policies for Climate Change Mitigation: A Review of the Literature
September 4, 2019--Summary:
Climate change is one of the greatest challenges of this century. Mitigation requires a large-scale transition to a low-carbon economy. This paper provides an overview of the rapidly growing literature on the role of macroeconomic and financial policy tools in enabling this transition.
The literature provides a menu of policy tools for mitigation. A key conclusion is that fiscal tools are first in line and central, but can and may need to be complemented by financial and monetary policy instruments. Some tools and policies raise unanswered questions about policy tool assignment and mandates, which we describe. The literature is scarce, however, on the most effective policy mix and the role of mitigation tools and goals in the overall policy framework.
Source: vox.com
