Traders Put $1.3 Billion Into Emerging ETFs
November 26, 2018--The move back to emerging markets gained momentum last week as traders shrugged off equity declines amid bullish calls from some of the world’s largest investment firms.
Inflows to U.S.-listed exchange-traded funds that invest across developing nations as well as those that target specific countries hit $1.28 billion in the week ended Nov. 23, bringing this year's total to $20.5 billion, according to data compiled by Bloomberg. That is the sixth consecutive week of inflows.
ETF rise helps damp down market distortions, research finds
November 24, 2018--Study shows reduction of 'index effect'. where prices rise before shares are included.
Large swings in the share prices of companies that are expected to be dropped or added to indices have become less common with the rise of passive investment, research has found.
Why the 2018 bitcoin price crash is just a 'blip not a bubble bursting'
November 23, 2018--The price of bitcoin has often been compared to history's biggest bubbles-Dutch Tulip mania in the 17th century, the Mississippi Bubble in the 18th century and the UK Canal and Railway mania in the 19th century-but perhaps the most popular comparison is the dot-com bubble of 2000.
In the space of five years, it seemed any company with a '.com' after its name provoked a feeding frenzy from investors, which led to an artificial inflation in their value.
Global growth is slowing amid rising trade and financial risks
November 21, 2018--Global economic growth remains strong but has passed its recent peak and faces escalating risks including rising trade tensions and tightening financial conditions, according to the OECD's latest Economic Outlook.
Growth forecasts for next year have been revised down for most of the world's major economies. Global GDP is now expected to expand by 3.5% in 2019, compared with the 3.7% forecast in last May's Outlook, and by 3.5% in 2020.
Slowing Growth and Interest Rate Fears Weigh on Fund and ETF Investors in October
November 19, 2018--For the second month in a row investors were net redeemers of mutual fund assets, withdrawing $28.7 billion from the conventional funds (ex-ETFs) business for October. Rising interest rates and fears of slowing global growth weighed on flows into long-term funds.
For the first month in eight the fixed income funds macro-group witnessed net outflows, handing back $20.4 billion for the month. And for the sixth consecutive month stock & mixed-asset funds witnessed net outflows (-$42.1 billion for October, their largest monthly net outflows since November 2016), while money market funds (+$33.8 billion, for their third month of inflows in four) witnessed the only net inflows.
FSB and standard-setting bodies publish final report on effects of reforms on incentives to centrally clear over-the-counter derivatives
November 19, 2018--The Financial Stability Board (FSB), the Basel Committee on Banking Supervision (BCBS), the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published today their final report on Incentives to centrally clear over-the-counter (OTC) derivatives.
The central clearing of standardised OTC derivatives is a pillar of the G20 Leaders' commitment to reform OTC derivatives markets in response to the global financial crisis. A number of post-crisis reforms are, directly or indirectly, relevant to incentives to centrally clear. The report by the Derivatives Assessment Team (DAT) evaluates how these reforms interact and how they could affect incentives.he central clearing of standardised OTC derivatives is a pillar of the G20 Leaders' commitment to reform OTC derivatives markets in response to the global financial crisis. A number of post-crisis reforms are, directly or indirectly, relevant to incentives to centrally clear. The report by the Derivatives Assessment Team (DAT) evaluates how these reforms interact and how they could affect incentives.P>view more
Oil's slide hands junk bond ETFs their biggest weekly drop since February
November 16, 2018--The tumbling price of crude oil in the past fortnight has put two of the biggest junk bond exchange traded funds on track for their worst weekly performances in nine months.
The two ETFs, with a combined market capitalisation of nearly $22bn, are both heavily weighted towards oil and gas companies, including a plethora of indebted shale producers, and are therefore particularly sensitive to swings in crude prices.
Stablecoins are crypto sector's next big bet
November 16, 2018--'Hybrid' cryptocurrencies are often pegged to real assets, including fiat currencies
When Elizabeth White set up a company in early 2017 to help new-found bitcoin millionaires buy luxury goods such as Lamborghinis and yachts, she quickly encountered a major problem: crypto price volatility.
Basel Committee publishes more details on global systemically important banks
November 16, 2018--The Basel Committee on Banking Supervision today published further information related to its 2018 assessment of global systemically important banks (G-SIBs), including additional details to help understand the scoring methodology.
The publication accompanies the Financial Stability Board's release of the updated list of G-SIBs and includes:
a list of all the banks in the assessment sample;
the denominators of each of the 12 high-level indicators used to calculate the banks' scores;
for the first time, the 12 high-level indicators for each bank in the sample used to calculate these denominators;
Islamic Countries Challenge USD 'Sanctioning Tool' With Planned Common Cryptocurrency
November 16, 2018--Muslim countries around the world are planning to push back against the U.S. dollar's long global dominance by creating a common digital currency for use in Islamic states.
The dollar has evolved into a "sanctioning tool," charged Erol Yarar, chairman of the Muslim-focused business lobby group International Business Forum (IBF). It has lost its purpose as an international trading currency, he said.