Americas ETP News
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Bloomberg to Launch Floating Rate Treasury Index
January 29, 2014--Today, the U.S. Treasury Department will hold its first auction of floating-rate securities. This is the first new security issued by the government in nearly two decades. These floating rate securities, or "floaters," offer yields that adjust based on changes in interest rates to provide investors with a hedge against a potential rise in interest rates.
To track this new asset class, Bloomberg Indexes will launch the Bloomberg U.S. Treasury Floating Rate Bond Index at the end of the first day of trading, January 31. In addition to the note issued at the initial auction, the index will track securities issued in subsequent auctions. Index data will be available to both buy and sell-side participants on the Bloomberg Professional service via the ticker BUSYFL.
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Source: Bloomberg
In Bernanke's final act, Fed cuts stimulus despite market turmoil
January 29, 2014--The Federal Reserve on Wednesday decided to trim its bond purchases by another $10 billion as it stuck to a plan to wind down its extraordinary economic stimulus despite recent turmoil in emerging markets.
The action was widely expected, although some investors had speculated that the U.S. central bank might put its plans on hold given the jitters overseas.
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Source: Reuters
Canadian Investment Advisors Remain Overwhelmingly Bullish On Stocks
January 29, 2014--Canadian investment advisors expect stocks to continue their torrid pace in Q1 of 2014, but are bearish on every other asset class, according to the Q1 2014 Advisor Sentiment Survey (the "Q1 Survey") conducted by Horizons ETFs Management (Canada) Inc. ("Horizons ETFs").
The Q1 Survey asked Canadian advisors to share their outlook on 15 distinct asset classes, indicating whether they were, at the time the survey was conducted, bullish, bearish or neutral on the anticipated returns from these asset classes in Q1 2014. Collectively, advisors were bullish on only six of the 15 asset classes surveyed, all of which were equity indices.
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Source: Horizons ETFs Management (Canada) Inc.
BMO Global Asset Management Canadian ETF Outlook 2014
January 29, 2014--The Canadian Exchange Traded Fund (ETF) industry had another strong year in 2013, with over $5.0 billion in inflows and climbing to $63.1 billion in assets under
management (AUM), an increase of 11.9% over year end 2012. Equity ETFs led the way with $2.7 billion in inflows, as investors continued to see the benefits of using ETFs for both strategic and tactical positions.
While fixed income inflows slowed after the tapering announcements that came out mid-year, investors still added $2.3 billion ininflows, which reflects the diversification and tradability benefits of fixed income ETFs.
The flows for commodity based, leveraged, and inverse ETFs were muted as investors concentrated on traditional portfolios.
In Canada, the top selling individual ETF was the BMO S&P/TSX Laddered Preferred Share Index ETF (ticker ZPR) which appealed to investors looking to diversify yield sources and lower interest rate sensitivity relative to fixed income. Another popular theme in both Canada and internationally was broad market exposure, as investors looked to take advantage of global growth opportunities. In the U.S., the ETF with the highest inflows was the SPDR S&P 500 ETF (ticker SPY) which gathered over $16 billion USD. The success of these differing underlying portfolios illustrates the diverse use of ETFs, as both core building blocks and precise satellite exposures.
view the BMO Global Asset Management Canadian ETF Outlook 2014
Source: BMO Global Asset Management
Federal Reserve issues FOMC statement
January 29, 2014--Information received since the Federal Open Market Committee met in December indicates that growth in economic activity picked up in recent quarters. Labor market indicators were mixed but on balance showed further improvement. The unemployment rate declined but remains elevated.
Household spending and business fixed investment advanced more quickly in recent months, while the recovery in the housing sector slowed somewhat.
Fiscal policy is restraining economic growth, although the extent of restraint is diminishing. Inflation has been running below the Committee's longer-run objective, but longer-term inflation expectations have remained stable.
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Source: FBR
CSOP takes first steps toward listing flagship RQFII ETF in the US
January 29, 2014--CSOP Asset Management is working with European ETF specialist Source to apply to the US Securities and Exchange Commission for the introduction of the CSOP Source FTSE A50 UCITS ETF.
The ETF closely tracks the performance of the FTSE China A50 Index, which comprises the top 50 shares in mainland China.
The move follows the RQFII ETF making its IPO debut on the London Stock Exchange on January 9.
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Source: ETFI ASIA
BlackRock May Double Size of Its Low-Cost ETF Lineup in 2014
January 28, 2014--BlackRock Inc. (BLK), the world's biggest money manager, plans to add as many as 10 new exchange-traded funds focused on international markets this year.
"We really want to double down on international categories to offer the next level of exposure for investors,” Daniel Gamba, head of BlackRock's institutional ETF business in the Americas, said yesterday in an interview.
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Source: Bloomberg
The Commodity Futures Trading Commission's Division of Market Oversight Announces Trade Execution Mandate for Certain Credit Default Swaps and Additional Interest Rate Swaps
TW SEF LLC Available-to-Trade Determinations Are Deemed Certified
January 28, 2014--The Commodity Futures Trading Commission's (CFTC or Commission) Division of Market Oversight (Division) today announced that TW SEF LLC's (Tradeweb) self-certification of available-to-trade
determinations (MAT Determination) for certain interest rate swap (IRS) and credit default swap (CDS) contracts is deemed certified.
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Source: CFTC.gov
Final Sequestration Report for Fiscal Year 2014
January 28, 2014--After the end of a session of Congress, CBO is required by law to issue a report that provides estimates of the caps on discretionary budget authority in effect for each fiscal year through 2021. CBO is also required to report whether, according to its estimates, enacted legislation has exceeded those caps; if the caps were exceeded, a sequestration (a cancellation of budgetary resources) would be required.
In CBO's estimation, such a sequestration will not be required for 2014. However, the Administration's Office of Management and Budget (OMB) has sole authority to determine whether such a sequestration is required and, if so, exactly how the proportional cuts are to be made. Those determinations are based on OMB’s own estimates of federal spending.
view the Final Sequestration Report for
Fiscal Year 2014
Source: Congressional Budget Office (CBO)
SEC Issues Risk Alert on Investment Advisers' Due Diligence Processes for Selecting Alternative Investments
January 28, 2014-- The Securities and Exchange Commission's Office of Compliance Inspections and Examinations (OCIE) today issued a Risk Alert on the due diligence processes that investment advisers use when they recommend or place clients' assets in alternative investments such as hedge funds,
private equity funds, or funds of private funds.
view the Risk Alert on Investment Advisers' Due Diligence Processes for Selecting Alternative Investments
Source: SEC.gov
