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Treasury Announces Marketable Borrowing Estimates
February 4, 2014--The U.S. Department of the Treasury today announced its current estimates of net marketable borrowing for the January - March 2014 and April - June 2014 quarters:
During the January -March 2014 quarter, Treasury expects to issue $284 billion in net marketable debt, assuming an end-of-March cash balance of $130 billion.
This borrowing estimate is $19 billion higher than announced in October 2013. The increase in borrowing relates primarily to changes in cash balance assumptions [[1] offset by higher receipts.
During the April -June 2014 quarter, Treasury expects to pay down $40 billion in net marketable debt, assuming an end-of-June cash balance of $150 billion.
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Source: US Department of the Treasury
UBS Declares Coupon Payments On Seven Monthly Pay ETRACS Exchange-Traded Notes
February 4, 2014--UBS Investment Bank today announced coupon payments for seven ETRACS exchange-traded notes (the "ETNs"), all traded on the NYSE Arca.
The relevant coupon information is provided in the table below:
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Source: UBS
S&P Dow Jones Indices Announces Changes To The S&P/TSX Canadian Indices
A Deletion From The S&P/TSX SmallCap Index
February 4, 2014--S&P Dow Jones Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
The shareholders of Aastra Technologies Limited (TSX:AAH) have approved an Arrangement Agreement with Mitel Networks Corporation (TSX:MNW). Aastra Technologies shareholders will receive a combination of cash and Mitel shares for each share held.
Aastra Technologies will be removed from the S&P/TSX SmallCap Index after the close of trading on Tuesday, February 4, 2014.
Source: S&P Dow Jones Canadian Index Services
CME Group Volume Averaged 12.9 Million Contracts per Day in January 2014, Up 13 Percent from January 2013
Equity index volume up 24 percent
Interest rate volume up 18 percent
Energy volume up 10 percent
February 4, 2014--CME Group, the world's leading and most diverse derivatives marketplace, today announced that January 2014 volume averaged 12.9 million contracts per day, up 13 percent compared with January 2013.
Total volume for January 2014 was more than 271 million contracts, of which 85 percent was traded electronically.
CME Group interest rate volume averaged 6.3 million contracts per day in January, up 18 percent from January 2013. Eurodollar futures volume averaged 2.6 million contracts per day, up 34 percent from the same period a year ago. Eurodollar options volume averaged 830,000 contracts per day, up 92 percent from January last year. Treasury futures volume averaged 2.3 million contracts per day, down 5 percent compared with the same period a year ago.
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Source: CME Group
First Trust Launches Canada's First European ETF
New exchange traded fund will provide Canadians with low cost exposure to European equities while hedging potential declines in foreign currencies
February 4, 2014-- FT Portfolios Canada Co. ("First Trust Canada"), a privately owned company is pleased to announce the launch of the common and advisor class of units of the First Trust AlphaDEX(TM) European Dividend Index ETF (CAD-Hedged) CA:EUR -0.35% CA:EURA +0.05% .
The First Trust ETF seeks to replicate, to the extent possible, the performance of the AlphaDEX(TM) European Dividend Index, net of expenses. The investment strategy of the First Trust ETF is to invest in and hold the Constituent Securities of the AlphaDEX(TM) European Dividend Index in the same proportion as they are reflected in the AlphaDEX(TM) European Dividend Index or securities intended to replicate the performance of the AlphaDEX(TM) European Dividend Index.
Horizons ETFs Announces Unit Consolidation view more
BlackRock launches new currency-hedged ETFs view more The Budget and Economic Outlook: 2014 to 2024 view the CBO The Budget and Economic Outlook:
2014 to 2024 Morgan Stanley-US ETF Weekly Update
ETFs posted net outflows of $14.0 bln last week,the second consecutive week of net outflows
13-week flows remain mostly positive among asset classes; combined $13.7 bln in net inflows US-Listed ETFs: Estimated Largest Flows by Individual ETF
Vanguard Total Bond Market ETF (BND) posted net inflows of $1.2 bln this past week,the most of any ETF US-Listed ETFs: ETF Dollar Volume
ETF monthly $ volume as a % of listed trading volume declined to 25% in January,which is below the 28% five-year average
Over the last five years,ETF monthly $ volume as a % of listed trading volume peaked in August 2011 at 36%
ETF $ volume was $438 bln last week,up $151 bln from the prior week and more than 56% above its 13-week average
Leveraged/Inverse ETFs accounted for 8% of ETF $ volume last week,but make up only 2% of ETF market share; this is not surprising as daily compounding makes Leveraged/Inverse ETFs more appropriate for active traders US-Listed ETFs: Short Interest Data Updated: Based on data as of 1/15/14
The iShares MSCI Emerging Markets ETF (EEM) had the largest increase in USD short interest at $2.1 bln
The average shares short/shares outstanding for ETFs is currently 4.4%,up from 4.2% last period US-Listed ETFs: Most Successful Recent Launches by Assets
$7.7 bln in total market cap of ETFs less than 1-year old
The top 10 most successful launches make up 46% of the market cap of ETFs launched over the past year request report BlackRock Takes Aim at Smaller Firms With ETF Starts, Fee Waiver view more
Source: First Trust
February 4, 2014--Horizons ETFs Management (Canada) Inc. ("Horizons ETFs"), the manager and trustee of the Horizons BetaPro NYMEX(R) Natural Gas Bear Plus ETF (the "ETF"), has announced today that it intends to consolidate the units of the ETF.
After the close of trading on Thursday, February 13, 2014 on the Toronto Stock Exchange (the "TSX"), the units of the ETF will be consolidated on the basis of the ratio (the "Consolidation Ratio") set out below, and will begin trading on a post consolidated basis on Friday, February 14, 2014, the effective date of the consolidation:
Source: Horizons ETFs Management (Canada) Inc.
February 4, 2014-- BlackRock Inc's iShares, the largest U.S. provider of exchange-traded funds, is launching a new set of currency-hedged ETFs on Tuesday as it looks to target investors interested in international equity exposure but concerned about potential losses from a rising U.S. dollar.
The new iShares ETFs, which are set to begin trading Tuesday on the NYSE Arca, will focus on Japan, Germany, and EAFE countries, which include developed markets outside of the U.S. and Canada. The ETFs hedge by using foreign currency forward contracts, which allow market participants to lock in an exchange rate on a specific date.
Source: Reuters
February 4, 2014--The federal budget deficit has fallen sharply during the past few years, and it is on a path to decline further this year and next year. CBO estimates that under current law, the deficit will total $514 billion in fiscal year 2014, compared with $1.4 trillion in 2009. At that level, this year's deficit would equal 3.0 percent of the nation's economic output, or gross domestic product (GDP)-close to the average percentage of GDP seen during the past 40 years.
As it does regularly, CBO has prepared baseline projections of what federal spending, revenues, and deficits would look like over the next 10 years if current laws governing federal taxes and spending generally remained unchanged. Under that assumption, the deficit is projected to decrease again in 2015-to $478 billion, or 2.6 percent of GDP. After that, however, deficits are projected to start rising-both in dollar terms and relative to the size of the economy-because revenues are expected to grow at roughly the same pace as GDP whereas spending is expected to grow more rapidly than GDP. In CBO's baseline, spending is boosted by the aging of the population, the expansion of federal subsidies for health insurance, rising health care costs per beneficiary, and mounting interest costs on federal debt. By contrast, all federal spending apart from outlays for Social Security, major health care programs, and net interest payments is projected to drop to its lowest percentage of GDP since 1940 (the earliest year for which comparable data have been reported).
Source: Congressional Budget Office (CBO)
February 3, 2014--Weekly Flows: $14.0 Billion Net Outflows
Second Consecutive Week of Net Outflows
ETF Assets Stand at $1.6 Trillion, Down 4% YTD
No ETF Launches Last Week
BlackRock Announces 10 ETF Closures
US-Listed ETFs: Estimated Flows by Market Segment
Last week's net outflows were led by US Large-Cap ETFs at $8.8 bln; conversely,Fixed Income ETFs posted net inflows of $887 mln,the most of any category we measured
Nine of the 15 categories we measured posted net outflows last week
ETF assets stand at $1.6 tln,down 4% YTD
International- Developed ETFs have generated $21.6 bln in net inflows over the last 13 weeks; the category has 13% market share,up from 10% at the beginning of 2013
Over the last 13 weeks,International- Emerging ETFs have posted net outflows of $14.4 bln,the most of any category we measure,as investors remain cautious about the ability of the space to deliver on needed structural reforms as well as lower expected GDP growth
Despite fears of rising interest rates,BND has managed to post net inflows 10 of the last 13 weeks,totaling $2.0 bln
The iShares MSCI EAFE ETF (EFA) has generated net inflows of $4.3 bln over the last 13 weeks,the most of any ETF; International - Developed ETFs have attracted meaningful net inflows over the last year
Over the last 13 weeks,the two largest emerging markets ETFs,Vanguard FTSE Emerging Markets ETF (VWO) and iShares MSCI Emerging Markets ETF (EEM),have exhibited a combined $14.1 bln in net outflows
EEM's shares short are at their highest level since 6/14/13 as investors flee emerging market equity and debt
685 ETFs exhibited short interest increases while 559 experienced short interest declines over the last period
Aggregate ETF USD short interest increased by $10.0 bln over the period ended 1/15/14
Six of the 10 most heavily shorted ETFs as a % of shares outstanding are sector/industry related
For the second consecutive period,the SPDR Oil & Gas Exploration & Production ETF (XOP) was the most heavily shorted ETF with shares short as a % of shares outstanding of 348%
Based on multiple borrowings and the ability to continuously create new shares,shares short as a % of shares outstanding can exceed 100% (only eight ETFs exhibited shares short as a % of shares outstanding equal to or greater than 100%)
Active ETFs account for 24% of the market capitalization of ETFs launched over the past year,the most of any category
Over the last 13 weeks,International - Developed ETFs have attracted $683 mln in net inflows,the most of any group
2014 ETF issuance=25 ETFs
Seven ETF sponsors and two asset classes (equities and fixed income) represented in top 10 most successful launches; we note that the representation of funds with an income orientation is currently five (down from seven at the end of the second quarter)
The Vanguard Total International Bond ETF (BNDX) is the largest ETF to come to market over the last year ($874 mln in market cap); BNDX measures the return of investment-grade bonds issued outside of the US and employs hedging strategies to mitigate foreign currency risk
Source: Morgan Stanley
February 3, 2014--BlackRock Inc. (BLK:US), the world's biggest provider of exchange-traded funds, is putting the heat on smaller competitors.
BlackRock and WisdomTree Investment Inc., the firm where former hedge-fund manager Michael Steinhardt is both non-executive chairman and the largest shareholder, will each open ETFs tomorrow targeting the same hot spot in the market, and at first glance both come with the same price tag. The twist: BlackRock's will be free for a year.
Source: BusinessWeek
