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Fed launches $400bn Operation Twist to boost US growth
Federal Reserve moves to push down long-term interest rates and kickstart housing market
September 21, 2011--The Federal Reserve ramped up its aid to the beleaguered US economy on Wednesday, launching an effort to put more downward pressure on long-term interest rates over time and help the battered housing sector.
The Fed said it would launch a $400bn program that will tilt its $2.85tn balance sheet more heavily towards longer-term securities by selling shorter-term notes and using those funds to purchase longer-dated treasuries – a strategy dubbed "Operation Twist", from the card game pontoon.
It will also reinvest proceeds from maturing mortgage and agency bonds back into the mortgage market, an acknowledgement of just how weak conditions in the sector have remained.
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Source: The Guardian
Rydex files with the SEC
September 21, 2011--Rydex has filed an amendment No.3 to Form S-1 with the SEC for the CurrencyShares® Chinese Renminbi Trust.
view filing
Source: SEC.gov
Van Eck files with the SEC
September 21, 2011--Van Eck has filed a post-effective amendment, registration statement with the SEC for the Market Vectors Yuan Bond ETF.
view filing
Source: SEC.gov
Credit Suisse Announces Launch of its New Market Neutral Equity ETN (ticker symbol “CSMN”) linked to the HS Market Neutral Index powered by HOLT
September 21, 2011--Credit Suisse today announced the launch of its Equity Market Neutral ETN, the first ETN to provide exposure to an equity market neutral strategy in an exchange traded format.
The Market Neutral Equity ETN (NYSE Arca: CSMN) is the newest addition to Credit Suisse’s suite of alternative ETN products. The lineup targets the “alternatives” segment of investor portfolios by providing liquid access to some of the most popular alternative investment strategies. The CSMN ETN tracks a market neutral strategy as represented by the HS Market Neutral Index Powered by HOLT. The index is intended to achieve stable returns while reducing risk by selecting a portfolio of 75 long stocks and 75 short stocks from over 20,000 global equities. The index uses Credit Suisse’s HOLT stock selection framework which incorporates factors including value and momentum.
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Source: Credit Suisse AG
Rafferty Asset Management Closing Direxion Airline Shares ETF
September 21, 2011--The Board of Trustees of the Direxion Shares ETF Trust, based upon the recommendation of Rafferty Asset Management, LLC, the Trust’s adviser, has decided to close the Direxion Airline Shares Fund (Ticker: FLYX).
Due to the Fund’s low levels of assets, Rafferty does not believe that it can continue to conduct the Fund’s business and operations in an economically efficient manner. As such, the Board concluded that it would be in the best interests of the Fund and its shareholders to liquidate and terminate the Fund. Shares of the fund will cease trading on the NYSE Arca, Inc. and close to purchases by investors as of the close of regular trading on October 10, 2011. Customary brokerage charges may apply to any transactions prior to that time.
“Direxion’s core business and success has been focused in the leveraged and inverse ETF, and other alternative fund space. With declining interest in a non-leveraged airline industry ETF, we feel it is in the best interest of the shareholders to close the fund and stick to the product for which we are best known,” said Dan O’Neill, President and CIO of Direxion. “Direxion’s focus has always been on providing investors with innovative investment products. We will continue to deliver investment options that help investors capitalize on opportunities in all market conditions.”
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Source: Direxion
Rafferty Asset Management Closing Direxion Airline Shares ETF
September 21, 2011--The Board of Trustees of the Direxion Shares ETF Trust, based upon the recommendation of Rafferty Asset Management, LLC, the Trust’s adviser, has decided to close the Direxion Airline Shares Fund (Ticker: FLYX).
Due to the Fund’s low levels of assets, Rafferty does not believe that it can continue to conduct the Fund’s business and operations in an economically efficient manner. As such, the Board concluded that it would be in the best interests of the Fund and its shareholders to liquidate and terminate the Fund. Shares of the fund will cease trading on the NYSE Arca, Inc. and close to purchases by investors as of the close of regular trading on October 10, 2011. Customary brokerage charges may apply to any transactions prior to that time.
“Direxion’s core business and success has been focused in the leveraged and inverse ETF, and other alternative fund space. With declining interest in a non-leveraged airline industry ETF, we feel it is in the best interest of the shareholders to close the fund and stick to the product for which we are best known,” said Dan O’Neill, President and CIO of Direxion. “Direxion’s focus has always been on providing investors with innovative investment products. We will continue to deliver investment options that help investors capitalize on opportunities in all market conditions.”
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Source: Direxion
Federal Reserve issues FOMC statement
September 21, 2011--Information received since the Federal Open Market Committee met in August indicates that economic growth remains slow. Recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated. Household spending has been increasing at only a modest pace in recent months despite some recovery in sales of motor vehicles as supply-chain disruptions eased. Investment in nonresidential structures is still weak, and the housing sector remains depressed. However, business investment in equipment and software continues to expand. Inflation appears to have moderated since earlier in the year as prices of energy and some commodities have declined from their peaks. Longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee continues to expect some pickup in the pace of recovery over coming quarters but anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Moreover, there are significant downside risks to the economic outlook, including strains in global financial markets. The Committee also anticipates that inflation will settle, over coming quarters, at levels at or below those consistent with the Committee's dual mandate as the effects of past energy and other commodity price increases dissipate further. However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.
To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee decided today to extend the average maturity of its holdings of securities. The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 years and to sell an equal amount of Treasury securities with remaining maturities of 3 years or less. This program should put downward pressure on longer-term interest rates and help make broader financial conditions more accommodative. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.
Maturity Extension Program and Reinvestment Policy
Frequently Asked Questions: Maturity Extension Program and Reinvestment Policy
Source: FRB
Global X files with the SEC
September 20, 2011--Global X has filed a post-effective amendment, registration statement with the SEC for the
Global X FTSE Portugal 20 ETF
Global X FTSE Ukraine ETF
Global X FTSE Greece 20 ETF
Global X Hungary ETF
Global X Luxembourg ETF
Global X FTSE Morocco 20 ETF
Global X Czech Republic ETF
Global X Slovakia ETF
Global X Qatar ETF
Global X Kuwait ETF
Global X Nigeria ETF
Global X FTSE Bangladesh ETF
Global X FTSE Sri Lanka ETF
Global X Kazakhstan ETF
view filing
Source: SEC.gov
Guggenheim reorganizes, phases out Rydex ETF
September 20, 2011--Guggenheim Partners LLC is merging 11 asset management businesses into a new $119 billion firm as part of a rebranding effort to attract financial advisers and institutional clients.
The company is renaming its asset management business Guggenheim Investments and putting that moniker on its RydexShares exchange-traded funds and most of its Rydex mutual funds.
Guggenheim led a group of investors that acquired Rydex SGI's parent, Security Benefit Corp, last year.
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Source: Reuters
SPDR® ETF Family Announces Impact of Receiving Income
September 20, 2011--The SPDR® S&P® Semiconductor ETF (NYSE: XSD) is announcing that on September 21, 2011, it will record additional securities lending income as a result of a stock lending transaction.
The total amount to be recorded by the fund is listed below. When the fund calculates its net asset value (“NAV”) per share on Wednesday, September 21, 2011, it is estimated that the Fund’s NAV will be impacted by the receipt of the corresponding income in the amount stated below based on the shares outstanding as of September 19, 2011.
| Fund | Income Received |
Shares Outstanding as |
Per Share Amount | |||
|
The SPDR® S&P® |
$181,683 | 1,600,000 | $0.1136 |
Source: SPDR Exchange Traded Funds
