Stablecoins Could Pose New Short-Term Credit Market Risks
July 1, 2021--The rapid growth of stablecoin issuance could, in time, have implications for the functioning of short-term credit markets, says Fitch Ratings. Potential asset contagion risks linked to the liquidation of stablecoin reserve holdings could increase pressure for tighter regulation of the nascent sector.
Contagion risks are primarily associated with collateralised stablecoins, varying based on the size, liquidity and riskiness of their asset holdings, as well as the transparency and governance of the operator, among other things.
Protecting Nature Could Avert Global Economic Losses of $2.7 Trillion Per Year
July 1, 2021--World Bank report lays out 'win-win' policies for countries to seek nature-smart recoveries from the pandemic.
A new World Bank report estimates that the collapse of select ecosystem services provided by nature-such as wild pollination, provision of food from marine fisheries and timber from native forests-could result in a decline in global GDP of $2.7 trillion annually by 2030.
The Economic Case for Nature underscores the strong reliance of economies on nature, particularly in low-income countries. The report highlights that Sub-Saharan Africa and South Asia would suffer the most relative contraction of real GDP due to a collapse of ecosystem services by 2030: 9.7 percent annually and 6.5 percent, respectively. This is due to a reliance on pollinated crops and, in the case of Sub-Saharan Africa on forest products, as well as a limited ability to switch to other production and consumption options that would be less affected.
Crypto and blockchain venture funding soars during 2021's second quarter
July 1, 2021--The amount of venture funding directed toward crypto and blockchain projects and companies jumped during the second quarter of 2021, according to data collected by The Block Research.
As noted in a new by-the-numbers breakdown by The Block Research's John Dantoni, a total of 497 related venture deals occurred during the period.
IOSCO consults on sustainability-related regulatory and supervisory expectationsin asset management
June 30, 2021--The Board of the International Organization of Securities Commissions (IOSCO) is requesting feedback on proposed recommendations about sustainability-related regulatory and supervisory expectations in asset management.
The IOSCO Consultation Report on Recommendations for Sustainability-Related Practices, Policies, Procedures and Disclosure in Asset Management (Consultation Report) focuses on investor protection issues and proposes that securities regulators consider setting regulatory and supervisory expectations for asset managers regarding sustainability-related risks and opportunities.
The recommendations cover five areas:
asset manager practices, policies, procedures and disclosure
product disclosure
supervision and enforcement
ETFGI reports assets invested in Thematic ETFs and ETPs listed globally reached a record US$414 billion at end of May 2021
June 30, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reports assets invested in Thematic ETFs and ETPs listed globally reached a record US$414 billion at end of May 2021. Thematic ETFs and ETPs listed globally gathered net inflows of US$1.57 billion during May, bringing year-to-date net inflows to US$50.99 billion which is much higher than the US$45.62 billion gathered at this point last year.
Total assets invested in Thematic ETFs and ETPs increased by 3.1% from US$400.92 billion at the end of April 2021 to US$413.55 billion, according to ETFG's May 2021 ETF and ETP Thematic industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Record $414 Bn invested in Thematic ETFs and ETPs listed globally at the end of May.
During May, Thematic ETFs and ETPs gathered net inflows of $1.57 Bn.
YTD net inflows of $50.99 Bn are a record, beating the prior record of $45.62 Bn set in May 2020.
ETFGI reports assets invested in Leveraged and Inverse ETFs and ETPs listed globally reached a record 106.7 billion US Dollars the end of May 2021
June 30, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reports assets invested in Leveraged and Inverse ETFs and ETPs listed globally reached a record US$106.7 billion US Dollars the end of May. Leveraged and Inverse ETFs and ETPs suffered net outflows of US$4.14 billion during May bringing year to date net outflows to US$199 million.
Total assets invested in leveraged and inverse ETFs and ETPs increased from US$102.4 billion at the end of April to US$106.7 billion, according to ETFGI's May 2021 Leveraged and Inverse ETF and ETP industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Record $106.7 billion invested in Leveraged and Inverse ETFs and ETPs listed globally at end of May.
Leveraged and inverse ETFs and ETPs listed globally suffered net outflows of $4.14 Bn during May.
Year to date leveraged and inverse ETFs and ETPs listed globally have suffered net outflows of $199 Mn.
IMF-What Is Driving the Rise in Advanced Economy Bond Yields
June 29, 2021---Summary:
The nominal bond yields for advanced economies rose sharply during the first quarter of the year. This note analyzes the drivers of this increase across the jurisdictions and tenors of the yield curve. A key investor focus, in particular, has been the rise in the nominal bond yields in the United States, which has had notable global financial stability spillovers.
view the IMF-What Is Driving the Rise in Advanced Economy Bond Yields
Investors pile $54bn in to ESG bond funds in fiery start to 2021
June 25, 2021--Inflows on track to surpass last year's record despite growing concerns over 'greenwashing'.
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Regulators begin to grapple with DeFi
June 24, 2021--In last week's private video call, some of the world's fastest-growing crypto start-ups educated global financial regulators in a corner of the market that largely evaded surveillance: Decentralized Finance A booming world.
According to people familiar with the conference, the event featured presentations by the decentralized exchange Uniswap and the derivatives exchange dYdX, as well as other popular so-called DeFi programs.
Why we shouldn't listen to crypto 'experts'
June 23, 2021--Most are just insiders talking up their interests
As someone who has written about crypto on and off for more than six years, I have become used to the endless armies of zealots and trolls who harangue me every time I write anything vaguely critical of bitcoin. I consider such goading annoying but part of the job, and I tend to ignore it.
But recently I've been struck by one increasingly common jibe, because it inadvertently undermines the supposedly altruistic aims of the bitcoin brigade: "Have Fun Staying Poor."
This meme has become so common in cryptoland that a song has been written in its honour; you can even buy T-shirts emblazoned with the phrase. The taunt is directed at so-called "no-coiners" like me whenever we express scepticism