Global ETF News Older than One Year
Here's a Bond Backed by Dirty Laundry
Another esoteric deal to hit the market
June 18, 2015--Coming soon to markets: a bond deal backed by-dirty laundry?
The $400 million of asset-backed securities (ABS) from Alliance Laundry Systems is the latest example of wacky assets being bundled into bonds that are then put up for sale to yield-hungry investors.
According to a ratings report from Standard & Poor's, the bond's payments ultimately depend on people's dirty laundry, or at least on their washing it.
Source: Bloomberg
High-Frequency Trading around Large Institutional Orders
June 18, 2015--Abstract:
Liquidity suppliers lean against the wind. We analyze whether high-frequency traders (HFTs) lean against large institutional orders that execute through a series of child orders. The alternative is that HFTs go "with the wind" and trade in the same direction.
We find that HFTs lean against the order in the first hour, but turn around and trade with the order in the case of multi-hour executions. This pattern could explain why institutional trading cost is 39% lower when HFTs lean against the order (by one standard deviation), but are 64% higher when they go with it.
Source: papers.ssrn.com
HFT Nightmare Gets Some Validation, But Only For Whales
June 18, 2015--To critics, high-frequency traders harm other investors by sniffing out their strategies and completing the juiciest trades first. New academic research from the Netherlands suggests naysayers have it at least partly right.
Large investors such as mutual funds and hedge funds break up their big stock trades into smaller pieces and execute them over the course of minutes or hours-an attempt to disguise their plans and avoid driving prices away from them.
Source: Bloomberg
Bitcoin-based ETN COINXBT Now Available in 179 countries through Interactive Brokers
June 18, 2015--XBT Provider AB (publ) announced today the availability of the ETN Bitcoin Tracker One in 179 countries.
Starting today anyone with an Interactive Brokers account can trade the ETN Bitcoin Tracker One. The ticker is COINXBT.
Bitcoin Tracker One is designed to mirror the return of the underlying asset, U.S. dollar (USD) per bitcoin.
Source: XBT PROVIDER
Smart beta: 2015 global survey findings from asset owners
June 18, 2015--The results are in for the FTSE Russell 2015 Smart Beta Survey. In 2015 a follow-up to the well-received 2014 survey was conducted to better understand the progression in perceptions and adoption of smart beta globally.
This comprehensive analysis provides greater detail and insight into the growing interested in and adoption of smart beta among asset owners.
Source: Russell Indexes
Institutional Investors: The Unfulfilled $100 Trillion Promise
June 18, 2015--STORY HIGHLIGHTS
Institutional investors are a large and growing actor in global financial markets, with nearly $100 trillion of assets under management in OECD countries alone.
Policy makers have supported institutional investors in the hope that they would help diversify risk, increase access to finance, and improve stability by investing counter-cyclically.
A growing body of research suggests that institutional investors have failed to live up to their early promise.
Source: World Bank
DGCX-Middle-Earth: FOMC still uncertain: Dollar hits one month low, Asia markets reacted positive
June 18, 2015--MARKET PULSE
FOMC: Fed Officials Downgrade Growth Outlook for 2015
Fed Chair Yellen: Fed will consider rate increases on meeting by meeting basis; Conditions for first rate increase not yet met; Fed decisions will depend on actual data in months ahead
Fed: GDP to grow 1.8% to 2.0% in 2015, vs March forecast of 2.3% to 2.7%
Fed: Unemployment rate expected to be slightly higher at the end of the year at 5.2% to 5.3%
Fed: Inflation remains low between 0.6% to 0.8% but is expected to gradually rise to its 2% target over the medium term
ECB to raise ELA Greek ceiling to €84.1B from €83.0B
GoI approves 16 Foreign Direct Investment proposals Worth Rs. 67.51B
GoI hikes import duty on flat steel products to 10% from 7.5% from June 16th. Duty on stainless steel unchanged
Source: DGCX
Losing edge in ETFs, State Street turns to hedge funds
June 18, 2015--Firm is expanding hedge funds and alternative investment strategies that can be offered to individual investors
The firm is expanding hedge funds and alternative investment strategies that can be offered to individual investors, Ronald O'Hanley, who in April replaced Scott Powers as head of the $2.45 trillion State Street Global Advisors, said in an interview from Boston. The money-management unit this month named Michael Ho to a newly-created role of chief investment officer for alternatives.
Source: Investment News
Global watchdog says to study bond market liquidity
June 17, 2015--Global regulators will review the structure of bond markets to see if any changes are needed as central bankers fret over the possibility of more "taper tantrums" once interest rates start to rise.
The International Organization of Securities Commissions (IOSCO), which groups market watchdogs from more than 100 countries, said its review would look at liquidity in the sector.
Source: Reuters
DMS-Indonesia On Right Track, But Still Has Many Hurdles To Overcome
July 17, 2015--It was with much anticipation on July 9, 2014, when Joko Widodo was elected President of Indonesia, the ASEAN region's largest economy with just over 53% of the vote.
I have written extensively about the significance of his election as well as that of India's Narendra Modi, not only because of their policies, but also because of who they are and where they came from. In too many countries in the developing world, it is the political elite who form dynasties and enrich themselves, in many cases at the expense of the population.
Source: Source: Peter Kohli of DMS for Nasdaq.com
