Global ETF News Older than One Year
CMRA White Paper-Asset Liquidity Risk: Piecing Together the Puzzle
November 2, 2017--Liquidity risk is a key risk and has been a recent focal point for regulators, with increasing transparency and attention demanded by SEC Rule 22e-4 for mutual funds and by Basel III's liquidity requirements for banks.
Meanwhile, market participants have a sense that asset liquidity may be deteriorating, but there is little agreement even on the definition of liquidity risk or on how exactly to measure it. It is clear, however, that asset liquidity risk is multifaceted and managing it is both an art and a science.
view the CMRA White Paper -Asset Liquidity Risk: Piecing Together the Puzzle
Source: Capital Market Risk Advisors, Inc. (CMRA)
OFR-How Safe are Central Counterparties in Derivatives Markets?
November 2, 2017--How likely is a central counterparty, or CCP, to default after a severe credit shock? This working paper uses credit default swap data to estimate the direct and indirect impacts of a default by CCP counterparties in derivatives trades.
It finds that a CCP could be more vulnerable to failure than conventional stress tests have shown.
view the How Safe are Central Counterparties in Derivatives Markets? white paper
Source: OFR (Office of Financial Research)
Bitcoin smashes past $7,000 for the first time
November 2, 2017--Bitcoin soared past the $7,000 mark for the first time Thursday
The virtual currency reached an all-time high of $7,355.35 at about 7:16 a.m. ET before trading at $6,895.41.
CME Group said it would introduce bitcoin futures contracts Tuesday
The cryptocurrency has had a bullish streak throughout the week following the CME's announcement that it will introduce bitcoin futures contracts.
Source: CNBC.com
BlackRock Global ETP Landscape Monthly Snapshot-October 2017
November 1, 2017--Summary
Global ETP industry year-to-date flows crossed $500bn in October
Global ETPs gathered $58.5bn in October, propelling year-to-date industry flows to
$517.1bn, eclipsing last year's record full-year total and led this month by U.S.,
broad global and broad emerging markets (EM) equity exposures
U.S. equities drew in $30.5bn driven by a rebound in large caps and faster flows to small-caps amid strong earnings reports and renewed optimism for tax reform
Broad global equity exposures brought in $12.7bn as global risk assets rallied on the Japanese election outcome and prospects for more central bank stimulus in Europe
Broad EM equities maintained momentum, gathering $4.6bn this month, focused in
the week leading up to China's Communist Party Congres.
Source: BlackRock
Infographic-The Two High-Growth Sectors That Could Outperform Tech
November 1, 2017--Over recent years, there has been no bigger opportunity for investors than technology.
The FAANG stocks alone have gained over $1 trillion in market capitalization since 2014-and these stocks, along with other tech movers and shakers, have helped propel indices to constant new highs.
Source: visualcapitalist.com
FSB considers financial stability implications of artificial intelligence and machine learning
November 1, 2017--The Financial Stability Board (FSB) today published a report that considers the financial stability implications of the growing use of artificial intelligence (AI) and machine learning in financial services.
Financial institutions are increasingly using AI and machine learning in a range of applications across the financial system including to assess credit quality, to price and market insurance contracts and to automate client interactions. Institutions are optimising scarce capital with AI and machine learning techniques,as well as back-testing models and analysing the market impact of trading large positions. Meanwhile, hedge funds, broker-dealers and other firms are using it to find signals for higher uncorrelated returns and to optimise trade execution. Both public and private sector institutions may use these technologies for regulatory compliance, surveillance, data quality assessment and fraud detection.
Source: Financial Stability Board (FSB)
ETF Securities-Investment Insights October 2017 Market Reality May Benefit Real Assets
November 1, 2017--Summary
Risks of an aging bull market and record low volatility may spur investors to diversify into real assets for protection.
Rising inflationary pressures may benefit real assets.
Real assets remain cheap relative to financial assets.
Real assets, hard assets, tangible assets. The investment industry is full of terms for this asset class. Regardless of the terminology, however, real assets are simply investments that provide a store of value linked to a physical asset such as gold, oil, or real estate. This distinction from traditional investment vehicles may result in two key benefits:
1) providing diversification from financial assets such as stocks and bonds;
2) hedging against rising inflation.
Given the current reality of the market, particularly in the US, the benefits of real assets may begin to shine again.
Source: etfsecurities.com
BetaShares-The cryptic reality of Bitcoin
November 1, 2017-- This year's sky-rocketing Bitcoin price and the fact that, as at the time of writing, Bitcoin's market cap is over US$100m, has brought cryptocurrencies into the public's consciousness.
With Bitcoin's ultra-high levels of volatility since its inception in 2009 it has truly been a rollercoaster ride!
Source: betashares.com.au
World Bank-Doing Business Records Nearly 3,200 Reforms in 15 Years to Improve Business Climate Worldwide
October 31, 2017--Governments in 119 economies carried out 264 business reforms in the past year to create jobs, attract investment and become more competitive, says the World Bank Group's latest Doing Business 2018: Reforming to Create Jobs report.
Marking its 15th anniversary, the report notes that 3,188 business reforms have been carried out since it began monitoring the ease of doing business for domestic small and medium enterprises around the world.
view the World Bank-Doing Business 2018 Reforming to Create Jobs report
Source: World Bank
How Billionaire Investors Hedge Against Geopolitical Black Swans
October 31, 2017--Investors must always be comfortable with the idea that the market bears risk.
Sometimes this risk flies under the radar and isn't as pronounced as it probably should be.
However, in other cases, the topic of risk can catapult to the forefront of discussion. There can be specific events or signals unfolding that give investors the jitters-and during these times, investors will make adjustments to their portfolios to avoid getting caught off guard.
Source: visualcapitalist.com
