Global ETF News Older than One Year
Industry increasingly questions ETF liquidity
July 18, 2016--Exchange-traded funds' low fees and liquidity have traditionally been their greatest selling points, but industry experts are questioning how ETFs can be more liquid than their underlying portfolios.
The ETF industry is not prepared for a rapid exit by investors.
Source: Investmentnews.com
Bond ETF funds attract $124bn this year
July 15, 2016--Yield-hungry investors buoyed by the prospects of further monetary easing have invested $124bn in bond exchange traded funds globally this year.
Brexit has meant interest rates are expected to be lower for longer, forcing investors to search for safe assets with a non-negative yield, creating massive demand for bonds that has pushed sovereign debt yields to new lows.
Source: newsoninvest.com
BlackRock Addressing Market Liquidity
July 15, 2016--Post-Crisis, the fixed income markets have adapted to changes due at least in part to regulatory reforms intended to enhance the safety and soundness of the global financial system.
Monetary policy, record new issuance, and financial regulatory reform have contributed to reduced dealer inventories and lower bond turnover. Issuers have been motivated by historically low interest rates to issue new debt in record amounts, which means that there are now many more bonds in the bond market.
Source: BlackRock
IEA releases Oil Market Report for July
July 13, 2016--Record pumping rates in the Middle East and recovering flows in Nigeria consolidate OPEC market share
Global oil supplies rose by 0.6 mb/d in June, to 96 mb/d, after outages curbed OPEC and non-OPEC supplies in May, while production was 750 kb/d below as higher OPEC output only partially offset non-OPEC declines, the newly released IEA Oil Market Report (OMR) for July informs subscribers. Non-OPEC supplies are set to decline by 0.9 mb/d in 2016, to 56.5 mb/d, before rising 0.2 mb/d in 2017.
Source: IEA
Infographic-The Volatile History of Crude Oil Markets
July 13, 2016--Crude oil is the world's most actively traded commodity, and oil-related trades are a staple for traders, hedgers, investors around the globe.
Source: visualcapitalist.com
ETF flows down by 20% as investors flee equities
July 12, 2016--Inflows to equity ETFs fell by 85% year-on-year in the first half, as investors shunned risk assets in favour of fixed income securities during a year of political and economic turmoil.
In the six months to the end of June 2016, global net new assets to equity ETFs reached $15 billion, according to research firm ETFGI.
IMF Working paper-The Dynamics of Sovereign Debt Crises and Bailouts
July 12, 2016--Summary: Motivated by the recent European debt crisis, this paper investigates the scope for a bailout guarantee in a sovereign debt crisis.
Defaults may arise from negative income shocks, government impatience or a a "sunspot"-coordinated buyers strike. We introduce a bailout agency, and characterize the minimal actuarially fair intervention that guarantees the no-buyers-strike fundamental equilibrium, relying on the market for residual financing. The intervention makes it cheaper for governments to borrow, inducing them borrow more, leaving default probabilities possibly rather unchanged. The maximal backstop will be pulled precisely when fundamentals worsen.
Source: IMF
Infographic-Then and Now: Key Bitcoin Stats and Figures
July 11, 2016--On the weekend, the Bitcoin ecosystem reached an extremely important milestone.
Taking place roughly every four years, the "halving event" officially occurred on July 9, cutting the reward for mining a block in half. In this case, the reward went from 25 BTC to 12.5 BTC.
Source: visualcapitalist.com
Global ETF assets under management set to exceed $7 trillion by 2021
July 11, 2016--PwC expects accelerated growth in Exchange Traded Funds (ETFs) over the next five years, with global assets under management (AUM), expected to exceed $7 trillion by 2021.
A new report, 'ETFs: A roadmap to growth' predicts the market will achieve further significant growth through entering new markets, expanding distribution channels and asset classes.
Many ETF providers are expected to expand their global footprint and offer ETF products across borders to compete outside their domestic markets. PwC believes that, to be successful, firms will need to develop an understanding of local and global tax laws and regulations.
view the ETFs: A roadmap to growth
Source: PwC
World faces deflation shock as China devalues yuan at accelerating pace
July 8, 2016--China has abandoned a solemn pledge to keep its exchange rate stable and is carrying out a systematic devaluation of the yuan, sending a powerful deflationary impulse through a global economy already caught in a 1930s trap.
The country's currency basket has been sliding at an annual pace of 12pc since the start of the year.
Source: telegraph.co.uk
