Global ETF News Older than One Year
IMF Working paper-The Transmission of Liquidity Shocks: The Role of Internal Capital Markets and Bank Funding Strategies
November 19, 2014--Summary: We analyze the transmission of bank-specific liquidity shocks triggered by a credit rating downgrade through the lending channel. Using bank-level data for US Bank Holding Companies, we find that a credit rating downgrade is associated with an immediate and persistent decline in access to non-core deposits and wholesale funding, especially during the global financial crisis.
This translates into a reduction in lending to households and non-financial corporates at home and abroad. The effect on domestic lending, however, is mitigated when banks (i) hold a larger buffer of liquid assets, (ii) diversify away from rating-sensitive sources of funding, and (iii) activate internal liquidity support measures. Foreign lending is significantly reduced during a crisis at home only for subsidiaries with weak funding self-sufficiency.
Source: IMF
Nature-Business culture and dishonesty in the banking industry
November 19, 2014--Trust in others' honesty is a key component of the long-term performance of firms, industries, and even whole countries. However, in recent years, numerous scandals involving fraud have undermined confidence in the financial industry. Contemporary commentators have attributed these scandals to the financial sector's business culture, but no scientific evidence supports this claim.
Here we show that employees of a large, international bank behave, on average, honestly in a control condition. However, when their professional identity as bank employees is rendered salient, a significant proportion of them become dishonest.
This effect is specific to bank employees because control experiments with employees from other industries and with students show that they do not become more dishonest when their professional identity or bank-related items are rendered salient.
Surce: Nature
South Africa: Brics On Track to Set Up Development Bank
November 18, 2014--An interim board of directors has been set up by BRICS to lead the next phase to establish the National Development Bank (NDB), an institution similar to the International Monetary Fund that will support the five emerging national economies.
This was announced by BRICS (Brazil, Russia, India, China and South Africa) during an informal meeting on the first day of the G20 Leaders' Summit held in Brisbane, Australia from 15 to 16 November, according to a statement from the South African Department of International Relations and Cooperation (DIRCO).
Source: allAfrica.com
BOOST Short & Leveraged ETFs/ETPs Global Flows Report for October 2014
November 18, 2014--The BOOST October 2014-Short & Leveraged ETFs/ETPs Global Flows Reportis now available.
Source: BOOST
Deciphering Developing Markets-On Developing Markets and Acronyms
Avoiding a Greek Tragedy| How to Invest in Russia
November 18, 2014--On Developing Markets and Acronyms
For some time I have been advocating two changes in terminology with regard to investing in the developing world.
First, it's not helpful to consider acronyms because, in my opinion, they are arbitrary. I've yet to have someone explain to me what relevance the most famous one BRICS has in today's world. None.
Remember last year when we had the Fragile 5 only to be superseded by the Fabulous 5? India somehow, mysteriously jumped from one to the other in the space of a few months. Silly, isn't it?
Source: DMS Funds
Historic rupee bond issued in London
November 18, 2014--The government has welcomed the International Finance Corporation's (IFC) announcement that it has issued an Indian rupee 10 billion bond in London today (Tuesday 18 November).
It is the largest ever rupee bond to be issued on the London Stock Exchange, and is the longest issue ever for an offshore rupee bond with a maturity of 10 years.
Source: Gov.uk
ETFS Precious Metals Weekly- Gold Shows Resilience Supported by Strong Physical Demand
November 17, 2014--Gold is showing resilience as it trades close to the cost of production and physical buying
accelerates. Gold shrugged off new record high US equity prices, the strong US dollar and lower
crude oil prices last week.
Indicating strong physical demand, last week forward gold leasing rates (GOFO rates) dipped to the deepest negative level, for one and two months, since the beginning of the millennium (chart below). While gold futures short interest on the COMEX remained elevated, silver non-commercial shorts sustained near the greatest number of futures contracts ever at 47,000. For the month of November, gold is the only precious to show a gain (+0.4% London PM) despite approximately 1% respective gains in the S&P 500 and the US dollar index and the 5.6% decline in crude oil. The prospects for a rally in silver and gold are increasing. A stumble in the US equity market and/or economic growth expectations could be a catalyst.
Source: ETF Securities
IOSCO Consults on Post-Trade Transparency in the Credit Default Swaps Market
November 17, 2014--The International Organization of Securities Commissions today published the consultation report Post-Trade Transparency in the Credit Default Swaps Market, which seeks to analyze the potential impact of mandatory post-trade transparency in the credit default swaps (CDS) market.
The report's analysis is based on a review of relevant works of international standard-setting bodies and academic literature and an examination of publicly available transaction-level post-trade data about CDS transactions before and after the introduction of mandatory post-trade transparency in certain CDS markets in the United States. IOSCO also conducted a survey of market participants and other market observers regarding their use of certain publicly available post-trade data and its perceived impact on the market.
view the IOSCO consultation report-Post-Trade Transparency in the Credit Default Swaps Market
Source: IOSCO
Deutsche Borse to disseminate sovereign bond indices for Africa's most developed economies
Concerto African Bond Indices deliver transparency and objectivity to expanding local currency bond markets
November 17, 2014--Deutsche Börse Market Data + Services today announced that it will begin disseminating fixed income indices and bond pricing data from African countries starting on 24 November 2014.
Concerto African Bond Indices are the first independent index family to measure pan-African local currency sovereign bond performance. The indices are calculated and maintained by Germany-based Concerto Financial Solutions.
Source: Deutsche Börse
Shanghai Stock Buying Through Exchange Link Reaches Limit
November 17, 2014--Investors piled into Shanghai shares on the first day of exchange-link trading, buying the maximum amount allowed in a sign of global demand for mainland equities as China opens up its $4.2 trillion market.
International investors purchased 13 billion yuan ($2.1 billion) of Shanghai shares by 1:57 p.m., triggering a halt in buy orders for the rest of the day.
Source: Bloomberg
