Global ETF News Older than One Year
Bitcoin surges to all-time record as 2020 rally powers on
November 30, 2020-- Bitcoin soared to a record high against the dollar on Monday, as its 2020 rally steamed ahead, boosted by increased demand from both institutional and retail investors that saw the virtual currency as a safe-haven and a hedge against inflation.
The digital unit touched an all--time peak of $19,864.15, breaking its prior record set nearly three years ago. It was last up 6.1% at $19,306.35.
SOurce: reuters.com
ETFGI reports Active ETFs and ETPs listed globally gather a US$58.69 billion in YTD net inflows and assets reached a record high of US$234.86 billion at the end of October 2020
November 25, 2020--ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that actively managed ETFs and ETPs saw net inflows of US$7.28 billion during October, bringing year-to-date net inflows to a record level US$58.69 billion which is significantly more than the US$34.85 billion in net inflows gathered at this point in 2019 as well as significantly more than the US$42.10 billion gathered in all of 2019.
Assets invested in actively managed ETFs/ETPs finished the month up to 2.8%, from US$228.41 billion at the end of September to reach a new record high of US$234.86 billion, according to ETFGI's October 2020 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
Assets invested in actively managed ETFs/ETPs reached a new record high of $234.86 billion at the end of October.
Year-to-date net inflows are a record level of $58.69 billion
Fixed Income based actively managed ETFs/ETPs gathered net inflows of $3.99 billion during October.
Source: ETFGI
How a Collective Infrastructure Push Will Boost Global Growth
November 24, 2020--With vaccines around the corner, there is increased hope that the pandemic could soon be under better control. That said, the need for cooperative efforts to work toward a better future has never been greater. Priority areas relate to the need to produce and distribute vaccines globally, tackle climate change, and bolster the economic recovery from the crisis.
An IMF report published ahead of the G20 leaders meeting argues that a synchronized infrastructure investment push could invigorate growth, limit scarring, and address climate goals. In fact, when many countries act at the same time, public infrastructure investment could help lift growth domestically and abroad through trade linkages. This positive "spillover" effect could provide an additional boost to global output.
Source: IMF
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
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.
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