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Fed downgrades its economic outlook but expects a rate hike this year Federal Reserve issues FOMC statement view more Lew, Hensarling spar over bond market liquidity view more INSIGHT-Vanguard price cuts rattle the brokers who sell its funds view more MSCI Launches Indexes with the ITG Fair Value Model Credit Suisse AG Announces the Reverse Split of its TVIX ETN view more 'Direct investors' a growing force in private markets
Then there are the Canadians. view more
CBO The 2015 Long-Term Budget Outlook view the CBO 2015 Long-Term Budget Outlook Three Citigroup ETNs Vulnerable to Unusual Trading After Firm Suspends New Shares view more Hedge-Fund Bet Hits Pensions view more
June 17, 2015--Federal Reserve policymakers sharply downgraded their view of the economy-forecasting the weakest annual growth since 2011-but indicated they were on track to raise a key interest rate in the coming months.
"It's not an ironclad guarantee, but we anticipate that that's something that will be appropriate later this year," Fed Chairwoman Janet L. Yellen told reporters Wednesday.
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Source: LA Times
June 17, 2015--Information received since the Federal Open Market Committee met in April suggests that economic activity has been expanding moderately after having changed little during the first quarter.
The pace of job gains picked up while the unemployment rate remained steady. On balance, a range of labor market indicators suggests that underutilization of labor resources diminished somewhat. Growth in household spending has been moderate and the housing sector has shown some improvement; however, business fixed investment and net exports stayed soft. Inflation continued to run below the Committee's longer-run objective, partly reflecting earlier declines in energy prices and decreasing prices of non-energy imports; energy prices appear to have stabilized. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations have remained stable.
Source: Federal Reserve
June 17, 2015- Treasury Secretary Jacob Lew and the chairman of the House Financial Committee sparred Wednesday over whether federal regulation
specifically the Volcker rule, has made the bond market less safe for investors.
Source: MarketWatch
June 16, 2015--The Vanguard Group, which in 40 years became the biggest mutual fund company by selling low-priced, market-matching funds, is competing with some of its best customers-the brokers and advisers who funnel client assets to its funds-by offering personalized service to investors with more than $500,000.
Making things worse for outside advisers, Vanguard is charging 0.3 percent of assets annually or less, compared with the 1 percent to 3 percent common among brokers and independent financial advisers.
Source: Reuters
June 16, 2015--MSCI Inc. (NYSE: MSCI), a leading provider of research-based indexes and analytics, today announced the launch of MSCI Indexes with the ITG Fair Value Model, which will make it simpler foractive mutual fund managers to explain some of the tracking error that may be linked to the fair value pricing adjustment of their international and global funds.
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Source: MSCI
June 16, 2015--Credit Suisse AG announced today that it will implement a 1-for-10 reverse split of its VelocityShares(TM) Daily 2x VIX Short Term ETN ("TVIX"), expected to be effective as of June 23, 2015.
On June 25, 2015, holders of record will receive one reverse split-adjusted ETN for every ten units of TVIX. In addition, such holders of record that hold a number of units of ETNs not evenly divisible by ten will receive a cash payment for any fractional number of units remaining of TVIX (the "partials").
Source: Credit Suisse AG
June 16, 2015--Private equity executives are rarely fazed by anyone on their way to'turning lots of investors' fees, and plenty of debt, into (preferably) lots of investors' money,
plus French châteaux and ivy-strewn university endowments.
Source: FT.com
June 16, 2015--If current laws remained generally unchanged, federal debt held by the public would exceed 100 percent of GDP by 2040 and continue on an upward path relative to the size of the economy-a trend that could not be sustained indefinitely.
The long-term outlook for the federal budget has worsened dramatically over the past several years, in the wake of the 2007-2009 recession and slow recovery. Between 2008 and 2012, financial turmoil and a severe drop in economic activity, combined with various policies implemented in response to those conditions, sharply reduced federal revenues and increased spending. As a result, budget deficits rose: They totaled $5.6 trillion in those five years, and in four of the five years, they were larger relative to the size of the economy than they had been in any year since 1946. Because of the large deficits, federal debt held by the public soared, nearly doubling during the period. It is now equivalent to about 74 percent of the economy’s annual output, or gross domestic product (GDP)-a higher percentage than at any point in U.S. history except a seven-year period around World War II.
Source: Congressional Budget Office (CBO)
June 16, 2015--Citigroup (C) indefinitely suspended the ability to create new shares in its family of three exchange-traded notes on Tuesday, leaving the products vulnerable to unusual trading behavior.
This topic sounds arcane but should be a huge red flag for shareholders: If no mechanism exists to create new shares, ETN prices can veer away from their net asset values in bouts of buying or selling, like closed-end funds.
Source: Barron's
Firms moved portfolios away from stock market to reduce risk, but missed out on rally
June 16, 2015--U.S. companies from Ford Motor Co. to supermarket chain Kroger Co. have boosted their pension plans' bets on hedge funds, a shift that left many of them on the short end of a stock-market rally.
Large corporate pension funds have quadrupled the share of their portfolios invested in hedge funds over the past five years, according to an analysis of about 300 firms in the S&P 500 by Wilshire Consulting.
Source: Wall Street Journal
