Americas ETP News
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'Direct investors' a growing force in private markets
June 16, 2015--Private equity executives are rarely fazed by anyone on their way to'turning lots of investors' fees, and plenty of debt, into (preferably) lots of investors' money,
plus French châteaux and ivy-strewn university endowments.
Then there are the Canadians.
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Source: FT.com
CBO The 2015 Long-Term Budget Outlook
June 16, 2015--If current laws remained generally unchanged, federal debt held by the public would exceed 100 percent of GDP by 2040 and continue on an upward path relative to the size of the economy-a trend that could not be sustained indefinitely.
The long-term outlook for the federal budget has worsened dramatically over the past several years, in the wake of the 2007-2009 recession and slow recovery. Between 2008 and 2012, financial turmoil and a severe drop in economic activity, combined with various policies implemented in response to those conditions, sharply reduced federal revenues and increased spending. As a result, budget deficits rose: They totaled $5.6 trillion in those five years, and in four of the five years, they were larger relative to the size of the economy than they had been in any year since 1946. Because of the large deficits, federal debt held by the public soared, nearly doubling during the period. It is now equivalent to about 74 percent of the economy’s annual output, or gross domestic product (GDP)-a higher percentage than at any point in U.S. history except a seven-year period around World War II.
view the CBO 2015 Long-Term Budget Outlook
Source: Congressional Budget Office (CBO)
Three Citigroup ETNs Vulnerable to Unusual Trading After Firm Suspends New Shares
June 16, 2015--Citigroup (C) indefinitely suspended the ability to create new shares in its family of three exchange-traded notes on Tuesday, leaving the products vulnerable to unusual trading behavior.
This topic sounds arcane but should be a huge red flag for shareholders: If no mechanism exists to create new shares, ETN prices can veer away from their net asset values in bouts of buying or selling, like closed-end funds.
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Source: Barron's
Hedge-Fund Bet Hits Pensions
Firms moved portfolios away from stock market to reduce risk, but missed out on rally
June 16, 2015--U.S. companies from Ford Motor Co. to supermarket chain Kroger Co. have boosted their pension plans' bets on hedge funds, a shift that left many of them on the short end of a stock-market rally.
Large corporate pension funds have quadrupled the share of their portfolios invested in hedge funds over the past five years, according to an analysis of about 300 firms in the S&P 500 by Wilshire Consulting.
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Source: Wall Street Journal
UPDATE 1-Deutsche Boerse eyes possible bid for FX platform 360T-source
June 15, 2015--Deutsche Boerse is looking at the possibility of buying currency trading platform 360T, a source familiar with the situation said on Monday, although it was not yet clear if the German exchange operator will place a binding bid.
Deutsche Boerse declined to comment on whether it was bidding, while 360T, one of a handful of multi-bank, multi-user platforms which have revolutionised foreign exchange trading over the past decade, was not immediately available to comment.
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Source: Reuters
Interview series: Investment Factors that drive ETF performance
June 15, 2015--In this latest piece Dan Weiskopf of Access ETF Solutions met with Salvatore Bruno, the Chief Investment Officer of IndexIQ.
Sal is responsible for research and product development at IndexIQ’s alternative investment strategies. As the developer of the first US based family of hedge fund replication strategy indices, Sal was early to recognize the benefits of the ETF wrapper and define the IndexIQ investment methodologies by specific factors and rules.
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Source: Access ETF Solutions
Pimco to Watchdogs: 'Consider the Pimco Experience'
June 15, 2015--It's not surprising that Pacific Investment Management Co. says that asset managers and their funds should not be designated as systemically important.
But what is interesting is Pimco's reasoning.
In a response to the most recent consultation on ways to designate systemically important fund managers, chief executive Douglas Hodge highlighted his firm's experience dealing with investors pulling large chunks of cash following the sudden departure of Bill Gross last September.
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Source: Wall Street Journal
Citi Statement on its C-Tracks Exchange-Traded Notes
June 15, 2015--Citigroup Inc. does not intend to issue any additional notes in its three series of C-Tracks ETNs.
These ETNs, which will continue to trade on the NYSE Arca, are listed below:
C-Tracks Exchange-Traded Notes Based on the Performance of the Citi Volatility Index Total Return Due November 12, 2020 (NYSE Arca:CVOL);
C-Tracks Exchange-Traded Notes Based on the Performance of the Miller/Howard MLP Fundamental Index Due September 28, 2023 (NYSE Arca:MLPC); and
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Source: Citi
Seeking More Clarity on Derivatives in Mutual Funds
Morningstar can't accurately determine which funds are using a particular type of derivative
June 15, 2015--Financial advisers say they would welcome more information on mutual funds' use of derivatives, something a recent proposal by regulators would require.
But some asset managers say they must tread a fine line. While advisers say they are for transparency, disclosing too much information about fund holdings could make it more difficult to generate strong returns, by allowing competitors to trade ahead of them, for example.
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Source: Wall Street Journal
SEC's Stein sees dangerous cracks in laws for mutual funds, ETFs
June 15, 2015--The rise of complex mutual and exchange-traded funds has exposed weaknesses in the outdated regulatory regime for the sector and could be putting retail investors at risk, a top U.S. regulator said Monday.
"I am concerned that we are starting to see some cracks in the foundation," Securities and Exchange Commission Democratic member Kara Stein said at a Brookings Institution event.
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Source: Reuters
