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Private equity eyes $400bn windfall from US retirement savers
June 3, 2020--The Trump administration on Wednesday cleared a path for ordinary savers to invest in private equity funds through their employer-sponsored retirement accounts, handing the alternative investment management industry a victory after a years-long push.
The US labour department, which governs 401(k) retirement accounts, said private equity could be used within the professionally managed funds on offer to savers, such as target date funds which invest in multiple asset classes.
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Source: FT.com
Bears Stampede Out of High-Yield ETFs With Fed Backstop in Play
June 2, 2020--Bearish bets on exchange-traded funds that track high-yield bonds plunged as the Federal Reserve stepped into the market.
Short interest as a percentage of shares outstanding on the $12 billion SPDR Bloomberg Barclays High Yield Bond ETF, ticker JNK, sank below 2%-- a four-year low ---after surging to as high as 25% in early March, according to data from IHS Markit Ltd. For the $25 billion iShares iBoxx High Yield Corporate Bond ETF, ticker HYG, bearish wagers are at the lowest level this year.
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Source: bnnbloomberg.ca
Changes Are Coming For Airline ETF, Slight Reduction In Dependence on Top 4 US Carriers
June 1, 2020--The U.S. Global Jets ETF, the lone exchange-traded fund dedicated to airline equities, is set to undergo some changes that will slightly reduce the fund's exposure to the four largest domestic carriers.
JETS follows the U.S. Global Jets Index, which typically includes 30 to 35 stocks. When that index rebalances in March, June, September and December, it assigns weights of 12% to the four largest U.S. carriers.
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Source: benzinga.com
Indxx Launches the Indxx Flexible Workplace Index
June 1, 2020--'New Work Order' is coming, facilitated not just by an on going pandemic but also due to the widespread benefits it entails. Corporations worldwide are starting to view crowded offices as a thing of the past and have initiated a dialogue about a permanent shift to work from home and reduced office space.
Our Indxx Flexible Workplace Indexis designed to capture the themes that are poised for growth as the world embraces the work from home routine. Indxxis excited to announce the launch of the Indxx Flexible Workplace Index ("The Index").
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Source: Indxx
Short the Target: The Specialist Funds Betting M&A Deals Won't Close
June 1, 2020--Some hedge funds that wager on mergers and acquisitions are taking an unusual approach to navigating the uncertainty caused by the new coronavirus: They're betting against the target.
For these so-called merger-arbitrage investors, this marks a big shift in strategy. They typically make money by buying up the stock of target companies in M&A deals, betting the share price will rise after a combination is announced and nears completion.
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Source: wsj.com
A Tug-of-War Between Bulls and Bears Is Muddling Risk Indicators
June 1, 2020--It used to be understood that if haven assets rise, then the risky ones would fall. Now, with both rallying, investors are having to rethink their playbooks.
The explosive recovery for U.S. stocks stands out against a commensurate rally for gold, which acts as an inflation hedge as well as a safe play.
Equities in both the euro area and Britain entered bull markets in recent weeks, even as demand for top-rated government debt pushed German yields further below zero and took the U.K.'s negative for the first time.
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Source: bnnbloomberg.ca
U.S. Economy Faces Long Recovery From Coronavirus Effects, Experts Say
June 1, 020--Surveys of purchasing managers in U.S., Asia and Europe offer some hope that decline in factory activity is starting to bottom out
The U.S. economy could take the better part of a decade to fully recover from the coronavirus pandemic and related shutdowns, a U.S. budget agency said, as a series of surveys pointed to continuing weakness in global manufacturing.
The Congressional Budget Office, a nonpartisan legislative agency, said the sharp contraction triggered by the coronavirus caused it to mark down its 2020-30 forecast for U.S. economic output by a cumulative $7.9 trillion, or 3% of gross domestic product, relative to its January projections. GDP...
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Source: wsj.com
Allianz Launches Two ETFs in Hotly Contested Market Niche
June 1, 2020--AZAA and AZBA begin trading Monday on NYSE Arca exchange
Defined-outcome ETFs growing in popularity amid volatility
Allianz Investment Management is stepping into a growing corner of the $4 trillion ETF market with two funds that protect against stock losses.
The AllianzIM U.S. Large Cap Buffer10 Apr ETF, or AZAA, and the AllianzIM U.S. Large Cap Buffer20 Apr ETF, or AZBA, begin trading Monday. The exchange-traded funds will seek to track S&P 500 Price Return Index up to a stated cap on gains, while shielding investors against the first 10% and then 20% of losses should the gauge drop. So-called buffer funds--a space dominated by niche issuer Innovator ETFs--have attracted over $2 billion worth of inflows so far in 2020.
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Source: bloomberg.com
Comparison of CBO's May 2020 Interim Projections of Gross Domestic Product and Its January 2020 Baseline Projections
June 1, 2020--Nominal GDP
In the May 2020 report, CBO projected that the level of nominal GDP in the second quarter of 2020 would be $790 billion (or 14.2 percent) lower than the agency had previously forecast in January 2020. The two largest differences between the two forecasts result from the economic effects of the COVID-19 pandemic in reducing output and the legislation enacted between January and early May in response, which partly offsets that reduction.
Subsequently, the difference between those projections of nominal GDP narrows from $533 billion (9.4 percent lower in the May projection) by the end of 2020 to $181 billion (2.2 percent lower) by 2030. As a result of those differences, CBO projects that over the 2020-2030 period, cumulative nominal output will be $15.7 trillion less than what the agency projected in January. That difference constitutes 5.3 percent of the value for cumulative nominal GDP for that period that the agency projected in January.
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Source: CBO (Congressional Budget Office)
Indxx 5G & NextG Thematic Index Licensed by First Trust for Exchange Traded Fund
May 30, 2020--Indxx is pleased to announce the Indxx 5G & NextG Thematic Index (the "Index") has been licensed to US-based ETF provider First Trust Advisors as the underlying benchmark for the First Trust Indxx NextG ETF (NASDAQ:NXTG), which began trading today.
The Index (ticker:INXTG) is designed to track the performance of companies that are at the core of the research and development of the new 5G cellular technology and next generation technologies as they emerge. The Index seeks to include only companies that have devoted material resources or made material commitments to the use of 5G technology. 5G is the next (fifth) generation of cellular technology, which promises to greatly enhance the speed, coverage and responsiveness of wireless networks.
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Source: Indxx
