Americas ETP News
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Fed withdraws from repo market after 10 months
July 8, 2020--The US Federal Reserve's unprecedented 10-month intervention in short-term borrowing markets has been wound down, after the central bank successfully tamed volatile funding costs that had threatened to cause disruption across the financial system.
The volume of the Fed's operations in the repo market, where investors swap high-quality collateral like US Treasuries for cash, fell to zero this week after the central bank's latest 28-day loan matured on Tuesday, taking a final $53.2bn out of the market.
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Source: technocodex.com
Invesco advances plans for offering active non-transparent ETFs
July 8, 2020--Invesco Ltd., a leading global provider of exchange-traded funds (ETFs), announced todaythat ithas expanded its plans to move forward with active non-transparent ETFs-by filing for an exemptive order to license Fidelity's active equity ETF methodology.
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Source: Invesco Ltd.
Vanguard Trounces BlackRock for ETF Flows in Volatile Half
July 7, 2020--Index fund pioneer gets about $89 billion, Bloomberg estimates
Industry leader iShares more affected as active traders sell
Vanguard Group's U.S. exchange-traded funds attracted inflows of about $89 billion in the first half, surging ahead of industry leader BlackRock Inc. in a volatile period.
BlackRock took in an estimated $38 billion, according to Bloomberg Intelligence data, as market swings fueled by the coronavirus crisis spurred selling from the types of active traders who favor the iShares lineup.
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Source: bloomberg.com
Traders Dump $2.6 Billion in Junk-Bond ETFs Amid Virus Angst
July 6, 2020--JNK, HYG lead high-yield outflows as coronavirus cases soar
Investors are finding solace in higher-quality debt: Principal
The surge in coronavirus cases has bond ETF investors shedding their riskier holdings in favor of the safety of U.S. government debt.
Over $2.6 billion exited from junk-bond exchange-traded funds last week, in addition to the $5.6 billion that fled from high-yield mutual funds. The $11 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)'s $746 million outflow led the way, followed by a $609 million withdrawal from the $27 billion iShares iBoxx High Yield Corporate Bond ETF (HYG).
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Source: bloomberg.om
SEC Adopts Amendments to Exemptive Applications Procedures
July 6, 2020--The Securities and Exchange Commission today announced that it has voted to adopt rule amendments to establish an expedited review procedure for exemptive and other applications under the Investment Company Act that are substantially identical to recent precedent, as well as a new informal internal procedure for applications that would not qualify for the new expedited process.
These actions are intended to make the application process more efficient as well as to provide additional certainty and transparency regarding the process.
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Source: SEC.gov
Alternative Investments: TrueMark Investments Launches A Structured Outcome ETF That Tracks the S&P 500 Index
July 2, 2020--The ETF listed on CBOE BZX effective July 1.
TrueMark Investments has launched the TrueShares Structured Outcome (July) ETF (NYSEAMERICAN: JULZ) that offers investors exposure to the S&P 500 price index.
The ETF is a "structured outcome" product, the first of its kind from TrueMark's structured outcome product suite. The ETF has an inbuilt downside buffer, with uncapped upside participation.
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Source: dailyalts.com
CBO-An Update to the Economic Outlook: 2020 to 2030
July 2, 2020--CBO projects that from 2020 to 2030, annual real GDP will be 3.4 percent lower, on average, than it projected in January. The annual unemployment rate, which was projected to average 4.2 percent, is now projected to average 6.1 percent.
This report presents the baseline economic forecast that CBO is using as the basis for updating its budget projections for 2020 to 2030. The agency currently plans to release those budget projections later this summer.
The 2020 coronavirus pandemic has brought about widespread economic disruption. To mitigate the contagion, governments, businesses, and households in the United States and around the world have taken measures to limit in-person interactions. Collectively referred to as social distancing, those measures include reducing social activities and travel, curtailing the activity of schools and business, and working from home. In the first quarter of 2020, the pandemic and associated social distancing ended the longest economic expansion and triggered the deepest downturn in output and employment since World War II.
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Source: CBO (Congressional Budget Office)
Vanguard and State Street Are Resisting the Hot New ETF Craze
July 1, 2020--The first active, non-transparent ETFs began trading this year
Two giants are in 'wait-and-see' mode amid ANT doubts
One of Wall Street's hottest innovations is being hailed as the potential key to luring trillions of actively managed dollars to the booming market for exchange-traded funds. Yet two of the industry's biggest players want no part of it for now.
Vanguard Group and State Street Corp. say they're in wait-and-see mode as active, non-transparent funds take their crucial first steps in the $4.3 trillion U.S. arena for ETFs.
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Source: bloomberg.com
AllianzIM Introduces July Series of U.S. Large Cap Buffered Outcome ETFs Available via Halo Investing
July 1, 2020--Global Financial Services Leader Expands Suite Of Next-Generation Risk Management Solutions
Allianz Investment Management LLC (AllianzIM), a wholly owned subsidiary of Allianz Life Insurance Company of North America (Allianz Life(R)), announces the AllianzIM U.S. Large Cap Buffer10 Jul ETF (NYSE Arca: AZAL) and the AllianzIM U.S. Large Cap Buffer20 Jul ETF will begin trading on the New York Stock Exchange.
AllianzIM Buffered Outcome ETFs are designed to expand the risk management strategies available to investors as prevailing market dynamics and declining appetite for risk create new challenges. Now offering low-cost buffered outcome ETFs, the AllianzIM ETFs seek to match the returns of the S&P 500 Price Return Index up to a stated Cap, while providing downside risk mitigation through a Buffer against the first 10% and 20% of S&P 500 Price Return Index losses for AZAL and AZBL, respectively over the 12-month outcome period.
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Source: Allianz Investment Management LLC
Minutes of the Federal Open Market Committee, June 9-10, 2020
July 1, 2020--Participants discussed tools for conducting monetary policy when the federal funds rate is at its effective lower bound (ELB). The discussion addressed two topics: (1) the roles of forward guidance and large-scale asset purchase programs in supporting the attainment of the Committee's maximum-employment and price-stability goals and (2) in light of the foreign and historical experience with approaches that cap or target interest rates along the yield curve, whether such approaches could be used to support forward guidance and complement asset purchase programs.
The staff briefing on the first topic focused on outcome-based forward guidance for the federal funds rate-which ties changes in the target range for the federal funds rate to the achievement of specified macroeconomic outcomes, such as reaching a given level of the unemployment rate or inflation-and asset purchase programs of the kind used during and following the previous recession.
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Source: federalreserve.gov
