Global ETF News Older than One Year
IMF Working Paper-Emerging Market Portfolio Flows: The Role of Benchmark-Driven Investors
December 17, 2015--Summary: Portfolio flows to emerging markets (EMs) tend to be correlated. A possible explanation is the role global benchmarks play in allocating capital internationally, the s called "benchmark effect." This paper finds that benchmark-driven investors indeed play a large role in a key segment of the market-the EM local currency government bond market-, accounting for more than one third of total foreign holdings as of end-2014.
We find that the prominence of these investors declined somewhat after the May 2013 taper tantrum, but remain high. This distinction is important in understanding the drivers of EM capital flows and their sensitivity to different types of shocks. In particular, a high share of benchmark-driven investors may result in capital flows that are more sensitive to global shocks and less sensitive to country factors.
Source: IMF
EDHEC-Risk Newsletter
November 17, 2015--EDHEC-Risk Institute newsletter.
The summary of this issue reads as follows:
1. New conceptual framework to better achieve individual investors' goals-an edito by Lionel Martellini, Professor of Finance, EDHEC Business School, Director, EDHEC Risk Institute
2. Yale School of Management-EDHEC-Risk Institute Certificate in Risk and Investment Management programme-an interview with Will Goetzmann and Lionel Martellini
3. Industry Analysis: IPE Supplement Autumn 2015, P&I Supplement August 2015...
4. Features: Alternative Equity Beta Investing: A Surveyview more
Source: EDHEC-Risk Institute
IOSCO Publishes report on Liquidity Management Tools in CIS
December 17, 2015--The International Organisation of Securities Commissions today published a report on Liquidity Management Tools in Collective Investment Schemes (CIS) that maps existing liquidity management frameworks in 26 member jurisdictions
with a particular focus on tools to help deal with exceptional situations (e.g., significant redemption pressure). The report is based on a survey sent to members of IOSCO's Committee 5 on Collective Investment Schemes.
Source: IOSCO
Man & machine: Building a knowledge platform to develop predictive prowess in asset management
December 17, 2015-- Big changes are afoot across a broad spectrum of the financial services industry. For example, in the wealth management and investment advisory space, thanks to huge technological developments in recent years, traditional wealth managers have a new competitor to face; the robo adviser...
Source: Hedge Week
FT explainer: currency trading algorithms
Algos are being designed to carry out ever more complex functions
December 17, 2015--Algorithm has been a dirty word this year. In September, Volkswagen admitted to installing a "sophisticated software algorithm" on certain vehicles to cheat emissions tests, and in November Barclays was fined $150m for alleged misuse of its foreign exchange algorithm.
New regulation will soon be in place to manage the potential for “market distortion” as a result of the increased use of algorithms in financial markets.
Source: FT.com
The Irony of Ending the U.S. Oil Export Ban Is Imports May Rise
December 17, 2015--WTI discount to Brent narrows, making imports more profitable
U.S. imports in week ended Dec. 11 rose to highest since 2013
The lifting of the U.S. ban on oil exports might actually make imports more appealing.
By allowing American oil to compete globally, the price for U.S. benchmark West Texas Intermediate crude is inching closer to the international marker Brent, which has traded at a premium for most of the past five years.
Source: Bloomberg
Renaissance Capital's Preliminary 2015 Global IPO Annual Review
December 16, 2015-Global IPO Issuance Falters in 2015
Weighed down by volatile equity returns, global IPO issuance failed to deliver a repeat of 2014's blockbuster year. Global IPOs raised only $156.2 billion in 2015, down 35% from 2014's seven-year highs but still slightly ahead of the ten-year median ($148.4 billion).
Following two years in the shadow of North American issuance, Asia Pacific returned to dominance with 44.6% share of all proceeds raised despite the on-again, off-again China A-share market, thanks in large part to the $12 billion triple listing of Japan Post''s bank, insurance and holding companies in October. Europe ran a close second, representing 35.4% of global proceeds raised, thanks to large privatizations such as Spanish airport Aena ($4.8 billion deal), Dutch bank ABN Amro ($3.6 billion) and Italian post office Poste Italiane ($3.4 billion).
Source: Renaissance Capital
Trading in the Pre and Post-Market Sessions Part I: Liquidity Profile
December 16, 2015--This is the first post in a three part series where the Tradebook Quantitative Research team examines the after-hours trading environment and the opportunities these sessions offer institutional traders.
For U.S.-listed stocks, a significant percentage of the day's volume trades are done in the pre-open and post-close sessions during earnings releases and other high-profile events. Below, we present some statistics that demonstrate that such events are not only associated with higher-than-average volume but also have significant price moves associated with them.
Source: Bloomberg
Bloomberg to Buy Barclays Index Business for $787 Million
December 16, 2015--Barclays said on Wednesday that it had agreed to sell its risk analytics and index solutions business to Bloomberg L.P. for 520 million pounds, or about $787 million.
The deal includes a variety of financial market indexes, including a family of bond indexes, and tools for analyzing and constructing financial portfolios.
Source: NY Times
Despite $28 Billion Drop in Global Private Infrastructure Investment in Energy, Transport, and Water, Strong Showing of Renewable Energy Projects
December 15, 2015-Despite a sharp decline in private investment in energy, transport, and water infrastructure in developing countries in the first six months of 2015, investment in renewable energy projects, mainly solar, rose to nearly half of the total investment-the highest level ever as a share of total investment, according to an update released today by the World Bank Group's Private Participation in Infrastructure Database.
Total private infrastructure investments for the energy, transport, and water sectors in 139 emerging economies dropped by more than half, from $53 billion in first six months of 2014 to $25 billion in the first six months of 2015, mainly due to a decline in the number of projects in Brazil, China, and India. Investments in other countries remained steady.
view the H1 2015 Global Private Participation in Infrastructure Update
Source: World Bank
