Global ETF News Older than One Year
Deutsche says hedge fund outflows 'typical' part of prime brokerage business
September 29, 2016--Deutsche Bank told CNBC on Thursday that it has seen outflows, but the prime brokerage business is "still very profitable" for the company.
Earlier on Thursday, U.S.-listed shares of Deutsche Bank hit a new all-time intraday low of $11.19 on the back of a report that a small number of hedge funds that do derivatives business with Deutsche have reduced their exposure.
Source: CNBC.com
IMF Working paper-U.S. Monetary Policy Normalization and Global Interest Rates
September 29, 2016--Summary: As the Federal Reserve continues to normalize its monetary policy, this paper studies the impact of U.S. interest rates on rates in other countries. We find a modest but nontrivial pass-through from U.S. to domestic short-term interest rates on average.
We show that, to a large extent, this comovement reflects synchronized business cycles. However, there is important heterogeneity across countries, and we find evidence of limited monetary autonomy in some cases. The co-movement of longer term interest rates is larger and more pervasive. We distinguish between U.S. interest rate movements that surprise markets versus those that are anticipated, and find that most countries receive greater spillovers from the former. We also distinguish between movements in the U.S. term premium and the expected path of risk-free rates, concluding that countries respond differently to these shocks. Finally, we explore the determinants of monetary autonomy and find strong evidence for the role of exchange rate flexibility, capital account openness, but also for other factors, such as dollarization of financial system liabilities, and the credibility of fiscal and monetary policy.
IMF-Monetary Policy Not Hurt by Rise of Nonbank Finance
September 29, 2016--Impact of monetary policy actions on economic activity has generally strengthened since 2000
Nonbank credit increases the effectiveness of monetary policy
Risk taking by banks, nonbanks responds to monetary policy
The growth in credit by financial institutions that are not banks has, if anything, strengthened the impact of monetary policy on the economy over the past 15 years, according to new research from the International Monetary Fund.
These so-called nonbanks include insurance companies, pension funds, and other financial institutions such as money market mutual funds, hedge funds, and finance companies.
view the Chapter 2: Monetary Policy and the Rise of Nonbank Finance
Source: IMF
Source research points to attractiveness of EM sovereign bond ETFs
September 29, 2016--European exchange-trade fund provider Source has released research revealing the relatively low indebtedness of emerging market countries compared to their developed peers.
Of the world's 20 largest economies, the 10 most indebted countries relative to their economic output in 2015, (including governments, non-financial sector corporates and households) were all from developed markets.
Source: etfstrategy.co.uk
EDHEC-Risk Newsletter September 2016
September 29, 2016--The EDHEC-Risk Newsletter September 2016 is available for viewing.
Source: EDHEC-Risk Institute
After Brexit, will a BRICS-it multilateral financial system be next?
September 28, 2016--There is no doubt that the Central Securities Depositories community has evolved through the various partnerships that have been forged over the decades.
While countries are leaving regional unions, such as Brexit, CSDs belonging to the BRICS nations continue to come together in the spirit of collaborating for the greater benefit of the financial markets.
Source: strate.co.za
WEF-The Global Competitiveness Report 2016-2017
September 28, 2016--The Global Competitiveness Report 2016-2017 assesses the competitiveness landscape of 138 economies, providing insight into the drivers of their productivity and prosperity.
This year's edition highlights that declining openness is threatening growth and prosperity. It also highlights that monetary stimulus measures such as quantitative easing are not enough to sustain growth and must be accompanied by competitiveness reforms. Final key finding points to the fact that updated business practices and investment in innovation are now as important as infrastructure, skills and efficient markets.
view the The Global Competitiveness Report 2016-2017
Source: WEF (World Economic Forum)
BIS-FAQs on "Supervisory framework for measuring and controlling large exposures" published by the Basel Committee
September 28, 2016--The Basel Committee today issued frequently asked questions on the global supervisory framework for measuring and controlling large exposures.
When the Committee published the revised Supervisory framework for measuring and controlling large exposures in April 2014, it noted that by 2016 it would review the appropriateness of setting a large exposure limit for exposures to qualifying central counterparties (QCCPs) related to clearing activities.
Source: BIS
Optimised Commodities: Delivering Alpha with Lower Volatility
September 28, 2016--Broad commodity prices have recently shown signs of recovery after falling by over 50% between 2011 and 2015.
The Optimised Commodity Index [1] (EBCI) has returned over 9% year-to-date, outperforming other broad commodity strategies including the Bloomberg Commodity Index (BCOM) and Thomson Reuters CRB by close to 200 bps. This outperformance reflects the two fundamental components on which the strategy is built upon, and this brief will explore how diversified commodities exposure coupled with futures curve optimisation have suppressed volatility whilst delivering alpha versus other commodity strategies on a year-to-date basis.
Source: WisdomTree
BNY Mellon's Pershing Survey Finds Baby Boomers Biggest Users of ETFs
More than two-thirds of advisors expect to increase use of ETFs in the next year
September 28, 2016--Despite the commonly held view that exchange traded funds (ETFs) are most popular with younger investors, a new whitepaper from Pershing LLC, a BNY Mellon company, in conjunction with Beacon Strategies LLC, finds that investors between the ages of 51-70 who work with advisors are, in fact, the largest users of ETFs, followed by those over the age of 71.
The report, The Evolving ETF: Using Exchange Traded Funds in Client Portfolios, surveyed more than 1,500 advisors in the U.S and around the globe. More than two-thirds of advisors who use ETFs intend to increase their usage over the next 12 months, while 55 percent said that more than half of their clients already have ETFs in their portfolios.
view the The Evolving ETF: Using Exchange Traded Funds in Client Portfolios report
Source: Pershing LLC
