Global ETF News Older than One Year
IMF Fiscal Monitor: Capitalizing on Good Times, April 2018
April 18, 2018--Global debt hit a new record high of $164 trillion in 2016, the equivalent of 225 percent of global GDP. Both private and public debt have surged over the past decade. High debt makes government's financing vulnerable to sudden changes in market sentiment. It also limits a government's ability to provide support to the economy in the event of a downturn or a financial crisis.
Countries should use the window of opportunity afforded by the economic upswing to strengthen the state of their fiscal affairs. The April 2018 Fiscal Monitor explores how countries can reduce government deficits and debt in a growth-friendly way.
High government debt is a concern
Of the $164 trillion, 63 percent is nonfinancial private sector debt, and 37 percent is public sector debt. Advanced economies are responsible for most global debt. Nevertheless, in the last ten years, emerging market economies have been responsible for most of the increase. China alone contributed 43 percent to the increase in global debt since 2007. In contrast, the contribution from low income developing countries is barely noticeable.
view the IMF April 2018 Fiscal Monitor
Source: IMF
ICE to begin futures trading in new alternative Libor rate
April 18, 2018-- IntercontinentalExchange, which administers the Libor lending rate, is to begin trading futures on the alternative benchmark rate intended to supplant the scandal-hit Libor.
The new 3 month Sonia futures contracts will be cash-settled and will debut on June 1, subject to regulatory approval, ICE said.view more
Source: FT.com
IMF-World Economic Outlook, April 2018 Cyclical Upswing, Structural Change
April 17, 2018--The global economic upswing that began around mid-2016 has become broader and stronger. This new World Economic Outlook report projects that advanced economies as a group will continue to expand above their potential growth rates this year and next before decelerating, while growth in emerging market and developing economies will rise before leveling off.
For most countries, current favorable growth rates will not last. Policymakers should seize this opportunity to bolster growth, make it more durable, and equip their governments better to counter the next downturn.
view the IMF World Economic Outlook, April 2018 Cyclical Upswing, Structural Change
Source: IMF
Regulation is shrinking capital markets
April 16, 2018--On 7 December last year, agreement was reached on the remaining proposals on bank capital requirements from the Basel Committee, thereby completing the main body of the post-crisis regulatory reforms. While they remain to be implemented, we are now clearly rebalancing away from rule making towards evaluating the effectiveness of the reforms.
It is generally acknowledged that that adoption of the Basel rules has made both banks and the overall financial system more resilient. A new post crisis regulatory framework was needed and has been broadly supported by the industry. However, there is not much empirical research available on the actual costs and benefits of the reforms. Instead, policymakers have been forced to rely on forward-looking studies which provide best guesses of what the impacts were likely to be in the future.
view the Impact of Regulation on Banks' Capital Markets Activities An ex-post assessment
Source: AFME
The Eurekahedge Report-April 2018
April 16, 2018--Highlights from this month's report
Hedge funds were down 0.13% as of Q1 2018-their worst quarterly showing since Q1 2016. Assets of the industry expanded by US$31.1 billion over the past three months largely on account of investor subscriptions which stand at US$31.8 billion since the start of 2018.
The US$256.0 billion CTA/managed futures mandated hedge fund industry has seen its asset base contract by US$13.5 billion year-to-date, with managers witnessing the highest performance-based losses of US$12.6 billion among strategic mandates for Q1 2018, while investor redemptions stood at US$0.9 billion over the same period. The Eurekahedge CTA/Managed Futures Hedge Fund Index was down 1.54% year-to-date.
The US$1.65 trillion North American hedge fund industry posted the steepest performance-based losses among regional mandates for Q1 2018, totalling US$1.2 billion while net asset inflows to the region stood at US$20.1 billion-almost 17% lower compared to the net asset inflows recorded in Q1 2017.
Multi-strategy mandated hedge funds saw the highest net outflows among strategic mandates for Q1 2018 following steep redemptions worth of US$15.3 billion in February – the highest monthly redemption on record. The Eurekahedge Multi-Strategy Hedge Fund Index was down 0.71% in March and down 0.08% year-to-date.
Source: Eurekahedge
ETF Securities Weekly Flows Analysis-Gold inflows strengthen as geopolitical risks take centre
April 16, 2018--Geopolitical risk drives US$33.2mn into long gold ETPs and US$13.6mn into long silver ETPs.
Inflows into copper ETPs rebound with US$29.1mn inflows last week.
US dollar ETP positions widened for the second week in a row to US$10.2mn, as investors positioned against the Euro.
Gold ETPs attracted the largest inflows in 23 weeks as risk aversion took centre stage amidst military activity in Syria and ongoing trade tensions. Following days of sabre rattling by Mr Trump, the US, UK and France launched a missile attack on Friday in an attempt to destroy the Assad regime's chemical weapon capabilities in Syria. In response, Russian president Vladimir Putin condemned the attack and warned that such action would inevitably lead to chaos. As the first port of call in times of political uncertainty, we expect gold to remain in demand for as long as the conflict between the US and Russia continues on the back of the Syrian crisis. In fact, for most of this year gold has been sporting its safe-haven hat.
Source: etfsecurities.com
ETFGI reports ETFs and ETPs listed globally gathered net inflows of US$18.99 Bn in March 2018
April 16, 2018--ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed globally gathered US$18.99 Bn in net inflows in March 2018. YTD 2018 net inflows are at US$137.12 Bn which is less than the US$197.28 Bn in net inflows at this point last year. (All dollar values in USD unless otherwise noted.)
Highlights
Net new assets gathered by ETFs/ETPs listed globally were $18.99 Bn in March
March 2018 marked the 50th consecutive month of net inflows into ETFs/ETPs listed globally
The majority of these net inflows have gone into lows cost, core and market cap ETFs/ETPs
Source: ETFGI
DECPG Global Weekly
April 13, 2018--Taking Stock
U.S. inflation rose in March; FOMC minutes revealed members' optimism about the U.S. economy. The U.S. producer
price index (PPI) rose 3.0 percent (y/y) in March, above expectations and up from 2.8 percent in February, reflecting an
increase in the cost of services.
The core PPI-which excludes food and energy prices-rose 2.9 percent, up from 2.7 percent in February. The consumer price index (CPI) rose 2.4 percent (y/y), following February's 2.2 percent increase, while the core CPI rose 2.1 percent (y/y), up from 1.8 percent in February (Figure 1). Minutes from the Federal Open Market Committee (FOMC) March meeting revealed that its members had become more optimistic about the outlook for the economy, and expected inflation to reach its 2 percent target in the near term.
Source: World Bank
BlackRock growth dented by market volatility
April 12, 2018--BlackRock suffered a sharp slowdown in inflows in the first quarter of this year after an increase in stock market volatility, but the recent US tax cut and a strong showing by its technology platform buttressed the results of the world,s largest asset manager.
Source: FT.com
S&P warns leveraged loan market could 'turn sharply'
April 12, 2018--he current credit cycle is approaching its peak that could "turn sharply," putting lenders and borrowers at risk at a time when the leveraged loan market is increasingly popular with investors, S&P Global Ratings said.
A report by S&P warned that the cycle could "turn sharply, particularly given global trade tensions and rising interest rates. Lenders and borrowers are, thereforem increasingly vulnerable to a dramatic and sustained change in risk appetite and capital flows," the report said.
Source: www.pionline.com
