Global ETF News Older than One Year
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
Source: IMF
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'.
Source: ft.com
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.
Source: californianewstimes.com
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
Source: btctoday.news
Global foreign direct investment set to partially recover in 2021 but uncertainty remains
June 21, 2021--Investment flows plunged globally by 35% in 2020 due to the COVID-19 crisis. The fall was heavily skewed towards developed economies.
Global foreign direct investment (FDI) flows are expected to bottom out in 2021 and recover some lost ground with an increase of 10% to 15%, according to UNCTAD's World Investment Report 2021, published on 21 June.
FDI flows plunged globally by 35% in 2020, to $1 trillion from $1.5 trillion the previous year, the report says. Lockdowns caused by the COVID-19 pandemic around the world slowed down existing investment projects, and the prospects of a recession led multinational enterprises (MNEs) to reassess new projects.
view the UNCTAD World Investment Report 2021-Investing in sustainable recovery
Source: unctad.org
A Proposal to Scale Up Global Carbon Pricing
June 18, 2021--Between one quarter and one half. That's how much carbon dioxide (CO2) and other greenhouse gases must fall over the next decade to keep alive the goal of restricting global warming to below 2°C. The fastest and most practical way to achieve this is by creating an international carbon price floor arrangement.
This matters to the IMF because climate change presents huge risks to the functioning of the world's economies. The right climate policies can address these risks and also bring tremendous opportunities for transformative investments, economic growth, and green jobs-so much so that our Board recently approved proposals to include climate change in our regular country economic surveillance and our financial stability assessment program.
Source: IMF
A Proposal to Scale Up Global Carbon Pricing
June 18, 2021--Between one quarter and one half. That's how much carbon dioxide (CO2) and other greenhouse gases must fall over the next decade to keep alive the goal of restricting global warming to below 2°C. The fastest and most practical way to achieve this is by creating an international carbon price floor arrangement.
This matters to the IMF because climate change presents huge risks to the functioning of the world's economies. The right climate policies can address these risks and also bring tremendous opportunities for transformative investments, economic growth, and green jobs-so much so that our Board recently approved proposals to include climate change in our regular country economic surveillance and our financial stability assessment program.
Source: IMF
FTSE Russell threatens to expel 208 ESG offenders from FTSE4Good
June 16, 2021--More than 200 companies are in danger of being thrown out of a family of FTSE Russell stock indices for failing to meet more stringent environmental standards.
The 208 companies represent 13.5 per cent of the 1,546 stocks in the FTSE 4Good index series-designed to measure the performance of businesses with strong environmental, social and governance (ESG) practices-which is tracked by a range of exchange traded funds and investors such as the Japanese Government Pension Investment Fund, the world’s largest pension fund.
FTSE Russell has given the companies 12 months to meet its tighter climate-performance standards or face deletion from the indices.
Source: telegraf.id
Central Bankers Talk Down Concerns Over Digital Currency Risks
June 16. 2021--Central bankers sought to play down concerns that their efforts to develop digital currencies will take business away from the financial industry.
Benoit Coeure, the head of the Bank for International Settlement’s Innovation Hub, which was expanded to Stockholm on Wednesday, said commercial lenders should look at central bank digital money "as an opportunity that will enable them to offer new services to their customers, as part of a broader set of new technologies."
Source: bloomberg.com
Exchange Traded Funds are directly financing fossil fuel companies at large scale-Oxford research
June 15, 2021--Financial institutions with over $70 trillion in assets have pledged to achieve net zero portfolios and loanbooks by 2050, including meeting ambitious interim 2030 targets.
However, new research by the Oxford Sustainable Finance Programme reveals that passive funds not only hold fossil fuel assets, but directly finance them by buying large quantities of new bonds issued by fossil fuel companies.
To track and manage transactions that are channeling capital flows directly into fossil fuels, the Oxford researchers propose a new metric, Primary Market Carbon Exposure (PMCE). PMCE measures the proportion of securities bought in primary market transactions, for example shares at IPO or new bond issuance, from fossil fuel companies.
They find that between 2015-2020, 14% of the value of new bond issues bought by U.S. corporate bond Exchange Traded Funds (ETFs) were in fossil fuels.
For example, the largest bond ETF, the iShares Core U.S. Aggregate Bond ETF with $88 billion in assets, had a PMCE of 14% in corporate bonds, while the iShares iBoxx USD Investment Grade and High Yield ETFs, with $39 billion and $22 billion in assets, had PMCEs of 9% and 20% respectively. The researchers also apply this metric to ETFs bought by the US Federal Reserve in 2020, resulting in a PMCE of 13%.
Source: smithschool.ox.ac.uk
