Global ETF News Older than One Year
Pimco Seeks Lending Role From Banks Hampered by New Regulations
July 8, 2015--Pacific Investment Management Co. head Douglas Hodge sees an opportunity to take business from banks by providing credit to the global economy, even as the company strives to avoid lenders' too-big-to-fail designation.
Global rules enacted to prevent another financial crisis have forced lenders to shrink their balance sheets, creating a need for credit in most of the world where about 80 percent of debt financing comes from banks, said Hodge, Pimco’s chief executive officer.
Source: Bloomberg
Global AUM in Short & Leveraged ETPs at record $63bn as investors reposition bullishly in equities and bearishly in bonds
July 8, 2015--The AUM of Short & Leveraged (S&L) ETPs reached a record $63 billion at the end of June 2015, a 2% rise YTD.
The growth was driven by S&L investors globally repositioning themselves bullishly in equities and bearishly in debt
S&L Equity ETPs saw $0.8 billion of net inflows as investors increased long positions in European and Japanese equities, while positions (long and short) in US equities were cut...
Source: Boost
OECD-Composite leading indicators continue to point to growth convergence in most major economies
July 8, 2015--Composite leading indicators (CLIs), designed to anticipate turning points in economic activity relative to trend, continue to point to growth convergence across most major economies and within the OECD.
The CLIs continue to point to firming growth in the Euro area1, including France and Italy, and to stable growth momentum in Germany, Japan and India. On the other hand, the CLIs point to easing growth in the United States, Canada, China as well as the United Kingdom, albeit from relatively high levels.
Source: OECD
China's Markets Plunge Deeper Into The Abyss As Investors Locked Out Of 71% Of Market
July 8, 2015--Markets in China have plunged deeper into the abyss as a market rout which has sent its shares into a bear market last monday are continuing to freefall as its stock market faces its biggest rout since 1992 and as firms suspend trading and freeze up markets as losses wipe out over $3.5 trillion in less than a month.
For a record 12th day in a row, Chinese margin debt balances have fallen, as investors continue to panic and rush to offload bets as the Chinese government continues to try to manage leverage down while encouraging speculation.
Source: emergingequity.org
IMF Working paper-What Slice of the Pie? The Corporate Bond Market Boom in Emerging Economies
July 7, 2015--Summary: This paper studies the determinants of shifts in debt composition among EM non-financial corporates
We show that institutions and macro fundamentals create an enabling environment for bond market development. During the recent boom episode, however, global cyclical factors accounted for most of the variation of bond shares in total corporate debt. The sensitivity to global factors appears to vary with relative bond market size-which we interpret to be associated with liquidity and easy entry and exit-rather than local fundamentals. Foreign bank linkages help explain why bond markets increasingly substituted for banks in channeling liquidity to EMs. Our results highlight the risk of capital flow reversal in EMs that benefited from the upturn in the global financial cycle mostly due to their liquid markets rather than strong fundamentals.
Source: IMF
IMF Working paper-Network Effects of International Shocks and Spillovers
July 7, 2015--Summary: This paper proposes a method for assessing international spillovers from nominal demand shocks. It quantifies the impact of a shock in one country on all other countries. The paper concludes that the network effects in shock spillovers can be substantial, comparable, and often exceed the initial shock.
Individual countries may amplify, absorb, or block spillovers. Most developed countries pass-through shocks, whereas low-income countries and oil exporters tend to block shock spillovers. The method is used to study demand shocks originating from a large and medium country, China and Ukraine respectively.
view the IMF Working paper-Network Effects of International Shocks and Spillovers
Source: IMF
Social Safety Nets Expand in Developing Countries, But Majority of the Poorest Still Lack Coverage
Safety net programs must be more efficient and effective to close the coverage gap: WB report
July 7, 2015--A growing number of developing countries are investing in social safety nets to improve the lives and livelihoods of billions of poor and vulnerable people, yet around 55 percent of the world's poor or 773 million people with acute needs still lack safety net coverage
-especially in lower-income countries and in urban areas-and countries must take action to close this coverage gap, says a new World Bank Group report.
According to The State of Social Safety Nets 2015, more than 1.9 billion people in 136 low-and middle-income countries are now on beneficiary rolls of social safety net programs. In Africa alone, the number of countries setting up social safety net programs has doubled over the past three years, as evidenced by rigorous evaluations that prove these programs work.
view the report-The state of social safety nets 2015
view the Infographic: Social Safety Nets Keep Millions Out of Poverty
Source: World Bank
Global asset managers fret over regulation-survey
July 7, 2015--Global asset managers see regulatory change as the biggest risk for their businesses over the next 12 months, State Street said on Tuesday.
In a survey of 400 managers in Asia, Europe and North America, 32 percent cited regulatory risk as highly likely to increase, compared with 21 percent for market risk, even as ructions in Greece and China dominate headlines.
Source: Reuters
Infographic: Social Safety Nets Keep Millions Out of Poverty
July 7, 2015--More than 1.9 billion people in 136 low and middle-income countries benefit from social safety net programs, yet 55 percent of the world's poor or 773 million poor people with acute needs still lack coverage.
As interest in and the use of social safety nets keep growing, countries struggle to make social safety net interventions more effective and to integrate them better in their overall social protection and labor systems.
view the Infographic: Social Safety Nets Keep Millions Out of Poverty
Source: World Bank
BlackRock ETP Landscape: Record first half flows
July 9, 2015--GLOBAL ETP FLOWS REACH FIRST HALF RECORD DUE TO JAPAN AND EAFE EQUITY AS WELL AS A U.S. REBOUND
Global ETP flows of $20.8bn in June pushed year-to-date asset gathering to a new high despite Q2 flows of $49.1bn equalling just half the Q1 total.
Aided by a market friendly Fed announcement, U.S. equities led all categories for the first time since December, bringing in $9.8bn driven by small-and mid-cap funds
Japan equity was strong contributing $5.7bn and EAFE equity also maintained momentum with $5.3bn
Pan-European flows were modest for a second month in a row relative to Q1 at $3.2bn as investors wait for a resolution to Greece's negotiations with its creditors
Currency-hedged equity funds brought in $3.3bn, but eased for a third month after peaking in March when the U.S. dollar stopped rallying
Source: BlackRock
