Global ETF News Older than One Year
IMF Working paper-The Volatility of Capital Flows in Emerging Markets: Measures and Determinants
March 7, 2017--Summary:
Capital flow volatility is a concern for macroeconomic and financial stability. Nonetheless, literature is scarce in this topic. Our paper sheds light on this issue in two dimensions. First, using quarterly data for 65 countries over the period 1970Q1-2016Q1, we construct three measures of volatility, for total capital flows and key instruments.
Second, we perform panel regressions to understand the determinants of volatility. The measures show that the volatility of all instruments is prone to bouts, rising sharply during global shocks like the taper tantrum episode. Capital flow volatility thus remains a challenge for policy makers. The regression results suggest that push factors can be more important than pull factors in explaining volatility, illustrating that the characteristics of volatility can be different from those of the flows levels.
Source: IMF
IOSCO finds little evidence of declining secondary corporate bond market liquidity
March 7, 2016--A report published today by the Board of the International Organization of Securities Commissions (IOSCO) has found no substantial evidence showing that liquidity in the secondary corporate bond markets between 2004 and 2015 has deteriorated markedly from historic norms for non-crisis periods.
The report, titled Examination of Liquidity of the Secondary Corporate Bond Markets, presents a data-driven analysis of secondary corporate bond markets during 2004 and 2015, with a specific focus on liquidity. It provides a global view of corporate bond market development within the broader economic and financial context.
view the Examination of Liquidity of the Secondary Corporate Bond Markets Final Report
Source: IOSCO
Modest pick-up in global growth but risks and vulnerabilities could derail recovery
March 7, 2017--Global economic growth is expected to pick up modestly next year to around 3.6 % from a projected 3.3% in 2017 but risks of rising protectionism, financial vulnerabilities, potential volatility from divergent interest rate paths and disconnects between market valuations and real activity hang over the outlook, according to the OECD.
The projected improvement largely reflects continuing and expected combined fiscal and structural initiatives in the major economies- notably China, Canada and the United States-together with a slightly more expansionary stance in the euro area, which could be more ambitious. Such policies are needed to catalyse private demand to boost global activity and reduce inequalities.
Source: OECD
ETFGI Reports The Global ETF/ETP Industry Grew Faster Than The Global Hedge Fund Industry During 2016
March 6, 2017--ETFGI, the leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reports today: that during 2016 the global ETF/ETP industry grew faster than the global hedge fund industry.
At the end of 2016 assets invested in the global ETF/ETP industry were US$530 billion larger than the assets invested in the global hedge fund industry (source HFR). This is a significant achievement for the global ETF/ETP industry, which will celebrate its 27th anniversary in March while the hedge fund industry is 68 years old.
Source: ETFGI
The correlation between USD and commodities is now gone: Citi
March 6, 2017--It's a given in the market that there's an inverse relationship between dollar strength and the price of commodities, but Citi Research argues that correlation is now gone.
"Commodity prices have traded in a strong inverse relationship with the U.S. dollar over the past decade or so, but this relationship broke down in late 2016 and the breakdown looks here to stay," analysts wrote in a note released on Monday.
Source: CNBC.com
BIS March 2017 BIS Quarterly Review: Beyond swings in risk appetite
March 6, 2017--Investors have started to discriminate more across asset classes, regions and sectors as they try to make sense of the implications of a changing political environment, in contrast to the cross-asset herd behaviour that characterised markets in recent years.
The shift away from the consistent waves of risk-on, risk-off buying and selling suggests that, during the quarter, central bank decisions, and the associated swings in investor risk appetite, played less of a role in driving valuations.
view the BIS Quarterly Review, March 2017
Source: BIS
ETF Securities Weekly Flows Analysis- Rate hike probability drives gold outflows
March 6, 2017--Investors sell gold as hawkish Fed sends the price lower
Technology themed equity ETPs continue to gain favour
Buying crude oil on price dips
Investors diversify within industrial metals
Largest inflows into short FTSE ETFs since July 2016
Investors sell gold as hawkish Fed sends the price lower. There was US$96.3mn of outflows from long gold ETPs last week, marking the first weekly outflow in five weeks.
Source: etfsecurities.com
Deutsche Bank refines strategy and announces capital increase
March 5, 2017--Capital Ratio (CET1 fully loaded) target of comfortably above 13 percent
Intended capital increase of approximately 8 billion euros from the issuance of new shares with subscription rights
Up to 2 billion euros of additional capital accretion targeted in next two years from asset disposals and a flotation of minority stake of Deutsche Asset Management
Significant strengthening of position in German home market intended, while retaining global reach in Corporate & Investment Bank, Wealth Management and Asset Management
Simplified business model consisting of three business units.
Source: Deutsche Bank
The world's biggest stock index turns 60 on Saturday
March 3, 2017--The S&P 500 Index officially launched 60 years ago on March 4th, 1957. While the Dow Jones Industrial Average-which started way back in 1885-is the most well-known reference point for the state of the stock market, the S&P 500 is far and away the gold standard for investors.
Source: CNBC.com
Deutsche Boerse taps the US commodity market
March 3, 2017--The commodity arm of Deutsche Börse Group, European Energy Exchange (EEX), has reached an agreement in principle with the shareholders of Nodal Exchange Holdings, LLC-a US regulated futures exchange, headquartered in Virginia-on the purchase of all shares.
Therewith Nodal Exchange will become part of Deutsche Börse Group. The acquisition gives Deutsche Börse access to the North American energy market, enabling the company to expand its global presence and membership base in line with its growth strategy "Accelerate".
Source: Deutsche Börse Group
