Americas ETP News
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Cracks open within the ranks of issuers
April 13, 2012--Market participants are calling it the exchange traded note, or ETN, that barked.
Last month the TVIX, an ETN marketed by VelocityShares, diverged dramatically from the volatility index it was meant to be tracking. Its issuer, Credit Suisse, had suspended the creation of new units due to its own internal risk limits, inhibiting the market from keeping the note’s value in check.
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Source: FT.com
AdvisorShares files with the SEC
April 13, 2012--AdvisorShares has filed a post-effective amendment, registration statement with the SEC for the Pring Turner Dow Jones Business Cycle ETF.
view filing
Source: SEC.gov
iShares files with the SEC-iShares Emerging Markets Corporate Bond Fund
April 13, 2012--iShares has filed a post-effective amendment, registration statement with the SEC for the iShares Emerging Markets Corporate Bond Fund
Symbol: CEMB
Listed Exchange:BATS
view filing
Source: SEC.gov
J.P. Morgan to Sponsor Two Additional PIMCO ETFs on the Mexican Stock Exchange
April 12, 2012--J.P. Morgan announced today that it has been appointed by PIMCO (Pacific Investment Management Company LLC), a leading global investment management firm, to offer two of its U.S.-registered Exchange Traded Funds (ETFs) on the international segment of the Mexican Stock Exchange, Bolsa Mexicana de Valores (BMV).
The two ETFs are in addition to the existing five PIMCO ETFs previously sponsored by J.P. Morgan on the same exchange.
The new PIMCO ETFs, PIMCO 0-5 Year High Yield Corporate Bond Index Fund (HYS) and PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund (ZROZ), are listed on the BMV in pesos and trades can be initiated through a local broker.
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Source: JP Morgan
Latin America - Markets refocus on fundamentals
April 12 , 2012--Latin American equities trailed global equities in 2011, giving back a small part of the huge outperformance delivered over the past decade.
Risk aversion has persisted since the fourth quarter of 2010, largely because of deterioration in the financial stability of the euro zone.
In 2012, however, we anticipate that markets will once again focus on local fundamentals. Starting from a base case of decelerating inflation across Latin America, we see room for multiple expansion across the region’s equity markets over the coming 18 months. In addition, because the political calendar appears relatively quiet in 2012, we believe election-related market volatility likely will be reduced.
Inflationary pressures that negatively affected Latin American equities in 2011 are expected to ease into 2012, removing the key, recent, local overhang to performance. The one exception is in Argentina, where official data mask a more deep-rooted inflation issue. In Brazil, we forecast that inflation data will have peaked in 2011, followed by a downward trend throughout the first half of 2012. Brazilian IPCA readings have remained stubbornly high since April 2011, above the 6.5% ceiling of the target band.
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Source: Mirae Asset Management
MSCI Tries to Make 'Frontier' Markets Safer
April 12, 2012--A new ETF offering announced Wednesday hopes to bring a little more civility to the frontier.
Investment product provider MSCI Inc. (NYSE:MSCI) is launching a new index, the MSCI Frontier Markets 100 Index — a spin-off of its broader MSCI Frontier Markets Index and comprising 100 of its largest and most liquid companies. In turn, this new index, will be used for a future BlackRock (NYSE:BLK) iShares ETF.
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Source: InvestorPlace
Nasdaq Proposes Issuers Pay Market Makers in Less-Active ETFs
April 12, 2012--Nasdaq Stock Market (NDAQ) (NDAQ) asked the U.S. Securities and Exchange Commission to allow companies sponsoring exchange-traded funds to pay market makers about $200 per day to quote their shares more aggressively.
The practice, currently illegal in the U.S., would spur quoting and transactions in ETFs that trade less than 2 million shares daily, benefiting investors by making more volume available to buy or sell at better prices, Nasdaq told the SEC in a filing published on April 6. The exchange said it would begin the program, which regulators must approve before it can be implemented, as a one-year study. The SEC rejected two earlier requests before they reached the public comment stage.
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Source: Business Week
Fed's Dudley: Too soon to say economy out of danger
April 12, 2012--The disappointing performance of the U.S. labor market in March shows it is too early to conclude the economy is out of the woods, despite months of encouraging economic data, New York Federal Reserve Bank president William Dudley said on Thursday.
The Fed is gathering more data to determine whether last month's non-farm payrolls report, which showed the economy added way fewer jobs than expected, was just a weather-related setback or a sign the recovery is losing momentum again, Dudley said.
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Source: Reuters
Asset managers demand ETF clarity
April 12, 2012--BlackRock and Vanguard, two of the largest issuers of exchange traded funds, are calling for clearer discrimination between their products and securities offered by investment banks that promise similar returns but would leave investors exposed were the issuing bank to fail.
The move comes as at least two regulators investigate unusual price movements last month in a tradeable security issued by Credit Suisse, which ETF issuers worry could lead investors to turn away from their own products.
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Source: FT.com
US equity funds see $7 bln outflow in week -Lipper
April 12, 2012--Investors pulled $7.03
billion from equity funds in the week ending April 11, with the bulk of the money coming out of funds invested in U.S. stocks, especially through exchange-traded funds, data from Thomson
Reuters' Lipper showed on Thursday.
Over the course of the holiday-shortened reporting week, the
Standard & Poor's 500 Index, the U.S. benchmark for equities, fell 2.16 percent.
Taxable bond funds took in $56 million, but investors pulled $4.39 billion from money market funds and $57 million from municipal bond funds, Lipper said.
Investors pulled $6.88 billion from equity funds invested in U.S. equities, of which $5.68 billion came from ETFs holding U.S. stocks. The high rate of investment outflow from ETFs suggests it came from institutional investors.
Almost half of the money withdrawn from ETFs that was invested in U.S. stocks came from funds that mimic the return of two major stock indexes, the S&P 500 and the Dow Jones industrial average.
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Source: Reuters
