Global ETF News Older than One Year
Assessment of Risks to Financial Stability from Crypto-assets
February 16, 2022--Crypto-asset markets are fast evolving and could reach a point where they represent a threat to global financial stability due to their scale, structural vulnerabilities and increasing interconnectedness with the traditional financial system.
This report examines developments and associated vulnerabilities relating to three segments of the crypto-asset markets: unbacked crypto-assets (such as Bitcoin); stablecoins; and decentralised finance (DeFi) and other platforms on which crypto-assets trade.
These three segments are closely interrelated in a complex and constantly evolving ecosystem and need to be considered holistically when assessing related financial stability risks. The report notes that although the extent and nature of use of crypto-assets varies somewhat across jurisdictions, financial stability risks could rapidly escalate, underscoring the need for timely and pre-emptive evaluation of possible policy responses.
Source: FSB (Financial Stability Board)
Investors pull $1.5bn from bond ETFs in January on inflation fears
February 11, 2022--Selling comes amid a sharp repricing of bonds as central banks turn more hawkish
Investors pulled money from fixed income exchange traded funds for the first time in more than five years in January, barring a one-off blip at the onset of the Covid-19 pandemic.
The selling comes amid a sharp repricing of bonds as central banks have turned more hawkish in the face of multi-decade high inflation in much of the developed world.
Source: SEC.gov
IMF FinTech Notes-Behind the Scenes of Central Bank Digital Currency: Emerging Trends, Insights, and Policy Lessons
February 9, 2022--Central banks are increasingly pondering whether to issue their own digital currencies to the general public, so-called retail central bank digital currency (CBDC). The majority of IMF member countries are actively evaluating CBDCs, with only a few having issued CBDCs or undertaken extensive pilots or tests. This paper shines the spotlight on the handful of countries at the frontier in the hope of identifying and sharing insights, lessons, and open questions for the benefit of the many countries following in their footsteps.
Clearly, what can be gleaned from these experiences does not necessarily apply elsewhere. The sample of countries remains small and country circumstances differ widely. However, the insights in this paper may inspire further investigation and allow countries to gain time by building on the experience of others. Importantly, the purpose of this paper is not to evaluate the courses taken by different jurisdictions, but to study and discuss their key experiences and lessons.
The paper studies six advanced CBDC projects, drawing on collaboration and exchanges with the respective central banks to get insights beyond what has previously been published. Unless a specific published source is cited, all information stems from interviews and workshops with members of CBDC project teams in each jurisdiction.
Source: IMF.org
Logistics Execs: Global Economy will Power through Supply Chain Turmoil
February 8, 2022-Executives are upbeat about 2022 despite pandemic-driven disruption, record freight rates
Most logistics industry executives see moderate-to-strong economic growth and little or no chance of recession in 2022, even without immediate relief from the snarled supply chains and sky-high ocean and air freight rates triggered by the COVID-19 pandemic.
Roughly two-thirds of the 756 industry professionals surveyed for the 2022 Agility Emerging Markets Logistics Index believe shippers will see cargo rates come down by the end of the year. Eighty-percent see port bottlenecks, air capacity shortages and trucking issues easing by year end.
Source: agility.com
Global carbon markets value surged to record $851 bln last year-Refinitiv
January 31, 2022--The value of traded global markets for carbon dioxide (CO2) permits grew by 164% to a record 760 billion euros ($851 billion) last year, analysts at Refinitiv said on Monday.
Most of the increase came from the European Union's Emissions Trading System (EU ETS), which launched in 2005 and is the world's most established carbon market.
It accounted for 90% of the global value at 683 billion euros, the annual Refinitiv Carbon Market Year in Review showed.
Source: reuters.com
The State of Finance for Nature in the G20 report
January 26, 2022--The State of Finance for Nature in the G20 report attempts to capture the complete amount and future need for G20 country spending on nature-based solutions assets and activities. It reveals that current G20 investments in nature-based solutions are insufficient, at USD 120 billion/year, and G20 Official Development Assistance and private sector investments are small when compared with domestic government spending.
The report calls for G20 countries to scale-up annual nature-based solutions spending to USD 285 billion by 2050 to tackle the inter-related nature, climate, and land degradation crises on which much of our economies are dependent, and provides recommendations to align development and economic recovery with nature goals through setting quantifiable monetary objectives, governance and policy options, and devices to facilitate systemic changes to meet this investment gap.
view the The State of Finance for Nature in the G20 report
Source: unep.org
IMF-A Disrupted Global Recovery
January 25, 2022--Growth slows as economies grapple with supply disruptions, higher inflation, record debt and persistent uncertainty.
The continuing global recovery faces multiple challenges as the pandemic enters its third year. The rapid spread of the Omicron variant has led to renewed mobility restrictions in many countries and increased labor shortages.
Supply disruptions still weigh on activity and are contributing to higher inflation, adding to pressures from strong demand and elevated food and energy prices. Moreover, record debt and rising inflation constrain the ability of many countries to address renewed disruptions.
Some challenges, however, could be shorter lived than others. The new variant appears to be associated with less severe illness than the Delta variant, and the record surge in infections is expected to decline relatively quickly. The IMF's latest World Economic Outlooktherefore anticipates that while Omicron will weigh on activity in the first quarter of 2022, this effect will fade starting in the second quarter.
Source: imf.org
Banks Prep a $100 Billion Debt Bonanza in Year of Mega Deals
January 21, 2022--Take-privates and corporate spin-offs attract buyout firms
Capacity of loan and high-yield market is set for a big test
Investment banks are readying more than $100 billion in massive debt packages to arm private equity with historic firepower in the battle for global acquisitions.
Source: bloomberg.com
Bitcoin's dominance declines as altcoins take over
January 19, 2022--Bitcoin's dominance declines as altcoins take over
A decade ago, crypto investors had a choice of one-bitcoin.
In the following years, a host of new cryptos were launched, such as Litecoin (LTC) and Ethereum (ETH), each offering novel features and use cases that were lacking in bitcoin (BTC).
Today, there are more than 8 000 cryptocurrencies, with scores being released to the market each week.
Most of these fail to attract much attention, and many will likely fail. But out of this confusion is emerging a core of potentially riveting crypto stories with real utility, rather than hype, to justify their surging prices.
Source: moneyweb.co.za
Net growth in ETF numbers almost doubles to a record 1,239 last year
January 17, 2022--Robust markets limit fund closures and spur optimism in new launches
The global exchange traded fund industry not only attracted record inflows it also racked up extraordinary growth in the breadth and depth of its offering last year.
An overall total of 1,503 ETFs and exchange traded commodities were launched, far ahead of the previous record of 873 recorded in 2018, according to data from Morningstar.
Source: ft.com
