Global ETF News Older than One Year
IMF Working paper-Systemic Risk: New Trade-off for Monetary Policy?
June 30, 2015--Summary: We introduce time-varying systemic risk in an otherwise standard New-Keynesian model to study whether a simple leaning-against-the-wind policy can reduce systemic risk and improve welfare. We find that an unexpected increase in policy rates reduces output, inflation, and asset prices without fundamentally mitigating financial risks.
We also find that while a systematic monetary policy reaction can improve welfare, it is too simplistic: (1) it is highly sensitive to parameters of the model and (2) is detrimental in the presence of falling asset prices. Macroprudential policy, similar to a countercyclical capital requirement, is more robust and leads to higher welfare gains.
view the IMF Working paper-Systemic Risk: New Trade-off for Monetary Policy?
Source: IMF
IMF Working paper-How Does Post-Crisis Bank Capital Adequacy Affect Firm Investment?
June 30, 2015--Summary: We examine the effect of bank capital levels on firm investment drawing on a sample of 11,106 non-financial firms from 2007 to 2013 in 16 advanced economies. We examine two measures of bank capital adequacy, the Tier 1 ratio and a simple leverage ratio, and find that firms with larger external financial needs invest relatively more when domestic financial systems have relatively high leverage ratios.
This pattern is more pronounced for those firms that have sound fundamentals, suggesting that bank balance sheets and their willingness to extend credit can be an important factor in determining aggregate investment and growth outcomes. The empirical findings are robust to a range of specifications. Bank Tier 1 capital ratio does not appear to have a significant effect on corporate investment, possibly because a higher Tier 1 ratio also captures a high share of assets with low risk weights.
view the IMF Working paper-How Does Post-Crisis Bank Capital Adequacy Affect Firm Investment?
Source: IMF
Flow Traders seeks 1.7bn euro valuation from upcoming IPO
June 30, 2015--Flow Traders, the Netherlands-based proprietary trading company, has set a target of up to €1.7bn from its Amsterdam flotation as investors show signs of warming to high-frequency trading.
Source: FT.com
WEF-Finance Sector Heading for Uber-Moment
June 30, 2015--Some of the world's largest finance-sector companies are reviewing their business models following the rapid growth of financial technology ("fintech") entrants in the sector.
This is the main finding of a World Economic Forum report entitled The Future of Financial Services: How Disruptive Innovations Are Reshaping the Way Financial Services Are Structured, Provisioned and Consumed, which is being released today.
The Forum's report draws on more than 100 interviews with industry experts and a series of workshops where executives from global financial institutions such as UBS, HSBC, Deutsche Bank, Barclays, Visa and MasterCard met with leading global fintech innovators like Zopa, Funding Circle, Transferwise and Ripple to discuss the future of their industry.
Source: WEF (World Economic Forum)
China Construction Bank and Euroclear sign MoU to foster offshore RMB growth
June 30, 2015--Euroclear Bank, the Brussels-based international central securities depository (ICSD), and China Construction Bank (CCB), whom has a market capitalization of US$ 251.4
billion, ranking it third among listed banks in the world have just signed a Memorandum of Understanding (MoU) to further develop the offshore Renminbi (RMB) capital market.
Source: Leaprate.com
Greece Misses $1.7 Billion IMF Payment, Joining Zimbabwe's Ranks
June 30, 2015--Greece became the first advanced economy to miss a payment on IMF debt, joining the historical ranks of delinquents from Cuba to Zimbabwe after the Mediterranean nation's bailout talks with creditors collapsed.
The International Monetary Fund's board has been informed that Greece is now in arrears, spokesman Gerry Rice said in a statement, after a 6 p.m. Washington deadline Tuesday for Greece's $1.7 billion payment, coinciding with the expiration of the nation’s European bailout.
Source: Bloomberg
New DTCC Data Products Service To Provide Dynamic Data Provisioning and Easier Access to DTCC Data
June 30, 2015--Provisioned data aims to help firms reduce risks, increase efficiencies, lower costs, provide market insight and bring greater transparency to their business operations
The Depository Trust&Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced the launch of a new centralized data provisioning service, DTCC Data Products.
EU-China summit
June 29, 2015--The 17th bilateral summit between the European Union and the People's Republic of China took place in Brussels on Monday 29 June 2015.
Jean-Claude Juncker, President of the European Commission, Donald Tusk, President of the European Council and Premier Li Keqiang of the State Council of the People's Republic of China celebrated the 40th anniversary of EU-China diplomatic relations, acknowledging the significant strides in the political, economic, social, environmental and cultural relations between the EU and China.
Source: Europa
Global alternative assets predicted to reach $15.3 trillion in 2020
June 29, 2015--A report just published by PwC predicts global alternative assets will increase to US$ 15.3tn by 2020.
In the lead up to it, the global alternative asset management industry is expected to experience a period of transformation as players calibrate their business and operations and make technology a top investment priority.
According to the report, 'Alternative Asset Management in 2020: Fast Forward to Centre Stage', the rapid developments in the global economic environment have pushed asset management to the forefront of social economic change. As a result, the need for sustainable long-term investment returns has propelled the alternative asset classes to centre stage.
view the PwC report-Alternative Asset Management in 2020: Fast Forward to Centre Stage
Source: PwC
Record zinc ETP inflows on rising expectations of production cuts
June 29, 2015--Overview
Commodity performance continues to be mixed as investors weigh concerns over the sustainability of Chinese growth against a broadening of the US economic recovery and possible reduction in Fed bond buying.
The three major central bank meetings this week will be closely watched for indications of possible policy changes. Some cyclical commodities such as crude oil and copper have been pressured by investor fears over the moderation of Chinese indicators, though positive rhetoric from Chinese officials recently, indicates they remain committed to growth.
SOurce: ETF Securities
