Global ETF News Older than One Year
Sovereign Domestic Debt Restructuring: Handle with Care
December 1, 2021--Restructuring domestic debt is like surgery: You only do it if you must, and you avoid it if it might do more harm than good.
With rising debt vulnerabilities and growing stocks of sovereign domestic debt in emerging and developing economies, the questions of when and how to restructure such debt are now more acute than ever.
Over the past two decades, emerging market developing economies have seen their share of sovereign domestic debt-let's call it "domestic debt" for short-increase from 31 to 46 percent of their total sovereign debt.
Thus, restructuring of domestic debt is likely to play a role in the resolution of future debt crises. A new IMF paper draws on the past 40 years of sovereign debt restructurings to offer some insights into the key considerations for a domestic debt restructuring that restores debt sustainability while minimizing the disruption caused.
Source: IMF
ESG Investments Poised to Reach $30 Trillion by 2030
November 30, 2021--Asset managers need to better plan and prepare for expected ESG funds growth, according to Broadridge research
A new report from Broadridge Financial Solutions, Inc., a global Fintech leader, reveals assets in dedicated environmental, social, and governance (ESG) mutual funds, ETFs, institutional mandates, and private funds are on track to grow from $8 trillion today to as much as $30 trillion by the end of this decade.
Asset managers stand to win up to $9 trillion of net new flows, with expanding opportunities through thematic strategies, climate transition and net zero solutions, and investments offering measurable sustainability impacts.
Source: broadridge.com
World Gold Council-New research: The social and economic contribution of gold mining
November 30, 2021--This report provides quantitative insights into how large-scale mining (LSM), and specifically mines operated by World Gold Council (WGC) member companies, contributes to economic advancement and improves livelihoods at a global, national and local community level. The report aims to inform and deepen the on-going discussion of the overall benefits of gold mining on host communities and countries, and to consider how those benefits can most effectively be supported and sustained.
In 2020, the WGC member companies produced 34.5 million ounces of gold and were able to contribute close to US$38 billion to the GDP of countries they operate in. World Gold Council member companies have committed to demonstrable standards of responsible and sustainable business practice and their data provided a robust sample to allow us to quantify the industry's socio-economic contribution.
Source: gold.org
Prospects Group Global Monthly-November 2021-Global activity is firming despite a nascent resurgence of COVID-19 and continued supply bottlenecks
November 23, 2021--Overview
High-frequency indicators point to an improvement in the United States and several commodity-exporting EMDEs, but to moderation in the euro area and Central and Eastern Europe.
Rising inflation pressures have yet to materially weigh on global financial conditions.
Special Focus: Informality, Poverty and Income Inequality
Informality is associated with significantly higher poverty and income inequality and less effective fiscal policies.
Informality, poverty, and inequality may interreact through various channels, including systematically higher wages in the formal sector, lower tax revenues, less government spending on essential public services, and weaker social safety nets.
Source: worldbank.org
Quantum Computing's Possibilities and Perils
November 23, 2021--Quantum computers could crack the cryptography that underpins financial stability
Soldiers in ancient Greece would send secret dispatches by wrapping a strip of parchment around a staff and writing across it. Their messages could be deciphered only by someone with a staff of the same thickness. It is one of the earliest examples of cryptography.
Today's secrets, such as Internet communication, digital banking, and electronic commerce, are protected from prying eyes by powerful computer algorithms. Yet these hitherto impenetrable cryptographic codes could soon be history.
Quantum computers can reach a level of optimization that would crack many of today's encryption keys in less time than it takes to generate them using conventional digital computers. Financial institutions should future-proof their cybersecurity systems without delay. Failure to do so will imperil financial stability.
Source: imf.org
Major sector ETFs face risk of large tech companies being reclassified
November 16, 2021--Three of the world's four largest sector-based exchange traded funds face a shake-up due to proposed changes in their composition that would reclassify major companies in information technology indices...
Source: ft.com
Vulnerabilities, resilience in global trading system examined in World Trade Report 2021
November 16, 2021--The 2021 edition of the WTO's World Trade Report examines why the interconnected global trading system is both vulnerable and resilient to crises such as the COVID-19 pandemic, how it can help countries to be more economically resilient to shocks, and what can be done to make the system better prepared and more resilient in the future.
The flagship publication, launched on 16 November, notes the need to address these issues in light of the prospect of increasingly frequent and more intense natural and man-made disasters.
The report conveys three main messages: first, today's hyper-connected global economy, characterized by deep trade links, has made the world more vulnerable to shocks, such as natural and man-made disasters, but also more resilient to them when they strike.
Second, policies which aim to increase economic resilience by unwinding trade integration - for example, by re-shoring production and promoting self-sufficiency -can often have the opposite effect, effectively reducing economic resilience.
view the World Trade Report 2021 Economic resilience and trade
Source: WTO (World Trade Organization)
ETFGI reports assets invested in actively managed ETFs and ETPs are a record 439 billion US dollars having increased 53.6 percent YTD in 2021
November 16, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that actively managed ETFs and ETPs gathered net inflows of US$10.36 billion during October, bringing year-to-date net inflows to US$120.28 billion.
Assets invested in actively managed ETFs/ETPs finished the month up to 5.1%, from US$418 billion at the end of September to US$439 billion, according to ETFGI's October 2021 Active 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 $439 Bn invested in actively managed ETFs and ETPs industry at end of October 2021.
Assets increased 53.6% YTD in 2021 going from $285.83 Bn at end of 2020 to $438.94 Bn.
Record YTD 2021 net inflows of $120.28 Bn beating prior record of $58.56 Bn gathered in YTD 2020.
$120.28 Bn YTD net inflows are $29.18 Bn greater than the full year 2020 record net inflows $91.10 Bn.
Source: etfgi.com
Crypto trading puts pressure on bourses to open all hours
November 14, 2021--Ability to buy and sell digital assets 24/7 is driving calls for weekend trading of forex and shares.
Source: ft.com
Crypto trading puts pressure on bourses to open all hours
November 14, 2021--Ability to buy and sell digital assets 24/7 is driving calls for weekend trading of forex and shares
Nonstop trading in cryptocurrency markets is pushing traders of traditional assets towards working longer hours-in a reversal of pre-pandemic campaigns by banks and fund managers to shorten opening times for bourses.
Since March last year, Bitcoin and other digital assets have entered the professional investor world, with pension funds and conservative custody banks following family offices and hedge funds into the risky but fast-growing crypto market.
Source: FT.com
