Global ETF News Older than One Year
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
Nearly half of City GDP at Risk of Disruption from Nature Loss, New Report Finds
January 16, 2022-Nearly half of City GDP at Risk of Disruption from Nature Loss, New Report Finds
Cities can take a leading role in unlocking economic opportunities with Nature-based Solutions
44% of GDP in cities around the world -$31 trillion- is at risk of disruption from nature loss
A new roadmap to help cities adopt Nature-based Solutions for urban infrastructure to optimise spend and supercharge sustainable growth
Climate-resilient infrastructure can create 59 million jobs and can mitigate growing risks from extreme weather
Cities contribute 80% to global GDP-but they also account for 75% of global greenhouse gas emissions. Integrating nature-positive solutions can help protect cities from growing risks associated with extreme weather while driving sustainable economic growth.
In collaboration with the Alexander von Humboldt Institute and Government of Colombia, the World Economic Forum's BiodiverCities by 2030 Initiative published a report addressing the urgency of cities' untenable relationship with nature. The Initiative's goal is to reverse this existential global threat and move forward with a plan that will result in cities and nature co-existing in harmony by the end of the decade.
Source: WEF (World Economic Forum)
BlackRock hits $10tn in AUM driven by strong Q4 inflows
January 14, 2022-BlackRock has become the first asset manager to cross the $10tn mark after the group's 2021 net flows hit a three-year high.
BlackRock has reached the $10tn milestone in assets under management, buoyed by $540bn in total net flows over the course of 2021, according to the firm's latest quarterly earnings report.
Source: citywireusa.com
BlackRock makes cuts to fees on $35bn in bond ETFs
January 13, 2022--Reduction bring charges on the iShares MBS ETF in line with its biggest competitors
BlackRock has shaved fees on two bond ETFs amid strong flows and price competition.
Fees on the $25.5bn iShares MBS ETF dropped 2 basis points to 4 bps, and expenses on the $9.1bn iShares 0-5 Year Tips Bond ETF fell 1 bp to 3 bps, the company said last week.
Source: ft.com
IOSCO consults on lessons learned from the operational resilience of trading venues and market intermediaries during the pandemic
January 13, 2022-- The Board of the International Organization of Securities Commissions (IOSCO) is requesting feedback on the lessons learned regarding the operational resilience of trading venues and market intermediaries during the COVID-19 pandemic.
In the Consultation Report, Operational resilience of trading venues and market intermediaries during the COVID-19 pandemic , published today, IOSCO describes the impact of the pandemic on trading venues and market intermediaries (regulated entities).
It concludes that these regulated entities largely proved to be operationally resilient and continued to serve their clients and the broader economy, despite unprecedented challenges, such as the restrictions on mobility and business operations and periods of extreme market volatility and record trading volumes. The pandemic also increased cyber security risks, accelerated the use of existing, new and emerging technologies and disrupted outsourcing arrangements.
Source: iosco.org
Monetary Finance: Do Not Touch, or Handle with Care?
January 13, 2022--Summary:
This paper reviews the theoretical arguments in favor and against MF and presents an empirical assessment of the risks that it may pose for inflation.
Source: IMF
Crypto Prices Move More in Sync With Stocks, Posing New Risks
January 11, 2022--There's a growing interconnectedness between virtual assets and financial markets.
Crypto assets such as Bitcoin have matured from an obscure asset class with few users to an integral part of the digital asset revolution, raising financial stability concerns.
The market value of these novel assets rose to nearly $3 trillion in November from $620 billion in 2017, on soaring popularity among retail and institutional investors alike, despite high volatility. This week, the combined market capitalization had retreated to about $2 trillion, still representing an almost four-fold increase since 2017.
Amid greater adoption, the correlation of crypto assets with traditional holdings like stocks has increased significantly, which limits their perceived risk diversification benefits and raises the risk of contagion across financial markets, according to new IMF research.
Source: IMF
