Global ETF News Older than One Year
IMF Departmental Papers-"Low for Long" and Risk-Taking
November 24, 2020--Summary:
The COVID-19 pandemic is causing an unprecedented worldwide economic contraction, leading central banks to reduce interest rates to historically low levels and making unconventional monetary policies-including "low for long" interest rates and asset purchases-increasingly common.
Arguably, however, the policies implemented are efficient because they encourage increased risk-taking, and they may have, if unintentionally, increase medium-and long-run macro-financial vulnerabilities. This paper argues that the resulting trade-offs need to be carefully accounted for in monetary policy models and outlines how that can be achieved in practice.
view the
Source: IMF
Who on Earth Can Work from Home? A global comparison sheds light on the importance of ICT infrastructure
The overall labor market burden of COVID-19 is bound to be larger in poor countries, where only a small share of workers can work from home and social protection systems are weaker.
The COVID-19 pandemic is expected to inflict severe pain in labor markets across the globe, and policy makers will need to target support to workers who are hit hardest. To inform such efforts, a recent working paper Who on Earth Can Work from Home presents an estimate of jobs that can be done from home across the globe. What’s new is the emphasis on access to the internet, which has become even more critical during the pandemic.
Source: World Bank
IMF: The economics of lockdown
One enduring lesson from the COVID-19 pandemic is that any lasting economic recovery will depend on resolving the health crisis.
Our research in the latest World Economic Outlook shows that government lockdowns-while succeeding in their intended goal of lowering infections-contributed considerably to the recession and had disproportional effects on vulnerable groups, such as women and young people. But the recession was also largely driven by people voluntarily refraining from social interactions as they feared contracting the virus. Therefore, lifting lockdowns is unlikely to lead to a decisive and sustained economic boost if infections are still elevated, as voluntary social distancing will likely persist.
Source: IMF
'Attack of the debt tsunami': Coronavirus pushes global debt to record high
The coronavirus crisis pushed global debt levels to a new high of over $272 trillion in the third quarter, the Institute for International Finance said, as it warned of the "attack of the debt tsunami."
Source: cnbc.com
What is securities lending, why do ETFs do it and is it risky?
The value of the collateral is equal to or greater than the value of the securities being borrowed.Exchange traded fund providers are particularly interested in the practice because ETFs -like pension funds and sovereign wealth funds, which are also big securities lenders- tend to be long-term owners. view more
Source: FT.com
Leveraging Islamic Fintech to Improve Financial Inclusion
Discussions around financial participation now look at making finance (both conventional and Islamic) more accessible to the general public. Strong leadership from financial regulators drive overall financial inclusion
Malaysia's framework for consumer and investor protection, covers both Islamic and conventional products
view the World Bank report-Leveraging Islamic Fintech to Improve Financial Inclusion
Source: World Bank
Traders unlikely to return to trading desks every day post-pandemic, research suggests
A recent poll of 210 financial services compliance professionals globally by Greenwich Associates found that just 4% expect their firms to require traders to return to in-house trading desks every day after the pandemic.
Source: thetradenews.com
Rocketing Bitcoin Stakes Claim as Pandemic Refuge for Brave
Bitcoin is seizing the spotlight from gold as a hedge against risks such as further dollar weakness or a pick-up in inflation, after widening its performance lead over the yellow metal.
The cryptocurrency's approximately 150% jump in 2020 puts the digital coin's price relative to gold at the highest in almost three years, data compiled by Bloomberg show.
Source: bloomberg.com
Global gold-backed ETFs: A popular gateway to the gold market
The increased quantity, size and location of gold ETFs have provided easier and more efficient access for investors allowing them to utilise many general advantages of ETFs.
While there are numerous ways for investors to own gold, such as bars, coins, derivatives, over-the-counter (OTC) instruments and gold stocks, many have embraced gold ETFs for qualities such as cost efficiency, transparency, and liquidity.
The growth and evolution of gold ETFs have already helped advance the broader gold market and are likely to continue to do so, providing additional support for the role of gold in portfolios.
Gold ETFs are global
Future Series: Cybersecurity, emerging technology and systemic risk
Enhanced cybersecurity is the only means by which this challenge can be addressed, but the approach to cybersecurity needs to be overhauled before the industry finds itself in any fit state to tackle the threat.
Source: weforum.org
October 22, 2020--STORY HIGHLIGHTS
A new estimate of the share of jobs that can be performed from home takes into account access to the internet, and finds that globally, one in every 5 jobs can be done from home-but in low-income countries, it's only one in every 26 jobs.
Given the variation across the globe or within countries, policies to address negative labor market impacts of COVID-19 need to be well-targeted and tailored to local conditions.
October 21, 2020--Government lockdowns are contributing considerably to the recession, according to new research by the IMF in their latest World Economic Outlook.
Vulnerable groups, such as women and young people, are particularly affected.
Voluntary isolation is also a contributor to economic adversity, meaning lifting lockdowns is unlikely to result in a decisive and sustained economic boost.
Until the health crisis is resolved, the economic crisis cannot be.
November 19, 2020--The IIF said global debt would break new records in the coming months to reach $277 trillion by the end of the year.
Among advanced nations, debt surged above 432% of GDP in the third quarter- a 50 percentage points increase from 2019.
November 19, 2020--The practice introduces some counterparty risk but offers a route to additional earnings
Securities lending should really be called securities renting. The owner of the securities "lends" them in return for a fee. While the securities are on loan the borrower transfers collateral in the form of other securities such as shares, bonds or cash to the lender.
November 18, 2020--Among ASEAN, OIC and other middle-income country, Malaysia stands as a leader in developing its Islamic finance industry as well as attaining financial inclusion
Deliberate policy measures since the 1960s have cultivated Islamic finance as a source of financial inclusion
Religious objections to financial participation have essentially been eliminated.
Regulatory initiatives with clear targets and tracking of milestones have pushed Malaysia to rank well in this regard
Standardized and comprehensive frameworks for consumer and investor protection
Dedicated institutions have grown out of this, raising confidence and promoting financing inclusion
November 18, 2020--Firms tackled remote working by shifting focus to compliance infrastructure and partnering with external technology providers, Greenwich Associates research found.
A small minority of traders are expected to return to trading desks every day in the post-pandemic world, as firms are tipped to support remote working in the long-term, research has suggested.
November 18, 2020--Jump versus gold spotlights case for Bitcoin as store of value
Coin's volatility is top argument against 'digital gold' claim
November 17, 2020--Gold-backed exchange-traded funds and similar products (gold ETFs)1 have flourished since their introduction in 2003, attracting both institutional and retail investors across the globe.2
Recently, gold has become globally accepted as a strategic asset amidst a high-risk and low-rate environment spurring investment demand and the expansion of the gold-ETF market.
Through September 2020, holdings in the 83 active gold ETFs we track totalled 3,880t, with total assets under management (AUM) of US$235.4 billion (bn)3- record highs in both tonnage and value terms.
November 16, 2020--Unless action is taken now, by 2025 next generation technology, on which the world will increasingly rely, has the potential to overwhelm the defences of the global security community.
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