Tuesday 28th April 2015
NEWS TICKER: MONDAY, APRIL 27th 2015:Luc Luyet, CIIA – Senior Market Analyst AT Swissquote says that yesterday, “the SNB surprised the market by announcing that the number of sight deposit account holders that are exempt from negative interest has been reduced. This decision doesn’t change much the domestic banks’ situation as the “20 times the minimum reserve requirement” rule is still running. On the other side, the institutions associated with the Confederation, such as the pension fund of the Confederation or the pension fund of the SNB, are no longer exempt of negative interest. Consequently, only the account holders of the national social security system are still fully exempt.” - High yield debt issuance remains buoyant. Issuance volume for the week ending April 17, 2015, slowed down a bit from the previous week, but remained strong. Junk bond, or high-yield debt, issuers continued to issue bonds as yields remained favourable. High-yield debt is tracked by the SPDR Barclays Capital High Yield Bond ETF and the iShares iBoxx $ High Yield Corporate Bond Fund. According to data from S&P Capital IQ/LCD, dollar-denominated bonds amounting to $10.75bn were issued across 16 transactions in the week ending April 17th. The issuance volume fell by 3.2% from the week ending April 10. Pricing was evenly spread across the week. The number of transactions fell from 18 to 16 week-over-week. Last week brought the total US dollar issuance of high-yield debt to $115.8bn in 2015 YTD, up some 15% from the same period in 2014, the bulk of which is refinancing of older debt - Moody's says EMEA auto ABS performance remained stable during the three-month period ending February 2015. The sector's average performance trend was positive in terms of delinquency ratios and cumulative losses. The 60+ day delinquencies decreased to 0.66% in February 2015 from 0.77% in February 2014, while cumulative defaults decreased to 1.06% from 1.20% over the same period. This decrease was due mainly to the good performance of the German and Dutch markets. The prepayment rate increased slightly to 13.49% in February 2015 from 13.30% a year earlier. As of February 2015, the pool balance of all outstanding rated auto ABS transactions was €27.55bn - According to Sino specialists Red Pulse, China’s State Council is considering allowing daily repatriation for QFII. Currently, RQFII enjoys T+1 repatriation while QFII is restricted to T+5. QFII is the largest channel for foreign investment into China with quota of USD150bn, however, only half of the quota is in use, like at least partly due to the five-day repatriation stipulation - Malaysia’s state pension fund will offer a Shari’a-compliant investment option for its members by 2017, Prime Minister Datuk Seri Najib Razak said today. Najib says it will create the largest Shari’a fund of its kind in the world. Malaysia has one of the world’s largest Islamic finance sectors and the authorities are keen to develop it further. They envision the industry accounting for 40% of the country’s total banking assets by 2020 compared with latest figures of around 23% released last year. The $160bn (MYR577.4bn) Employees Provident Fund (EPF) already invests about a third of its portfolio in stocks and bonds that comply with Islamic principles, which ban interest payments and pure monetary speculation. The fund reportedly hired consultants last year to study the feasibility of a state-backed pension fund focusing entirely on Shari’a-compliant investments. Additionally, local press reports says that Malaysia’s sovereign wealth fund Khazanah Nasional has received regulatory approval to issue a MYR1billion (around $275m) socially responsible Islamic bond - The NASDAQ OMX Group, Inc has declared a regular quarterly dividend of $0.25 per share on the company's outstanding common stock, an increase of 67% from the prior $0.15 per share quarterly dividend. The dividend is payable on June 26TH 2015, to shareowners of record at the close of business on June 12TH 2015 - Lazard Ltd today reported operating revenue1 of $581m for the quarter ended March 31st. Adjusted net income was $103m, or $0.77 (diluted) per share for the quarter. These results exclude a pre-tax charge of $63m relating to a debt refinancing2. Q1 2015 net income on a U.S. GAAP basis, including the pre-tax charge, was $56m, or $0.42 (diluted) per share. "Our Financial Advisory and Asset Management businesses continue their strong performance," says Kenneth M. Jacobs, Chairman and Chief Executive Officer of Lazard. "In the first quarter, we refinanced and repaid a portion of Lazard's long-term debt, significantly reducing our interest costs," adds Matthieu Bucaille, chief financial officer of Lazard. "Consistent with our capital management objectives, we have increased the quarterly dividend by 17%, the fifth increase in as many years." -

SSgA expands LDI range of funds

Tuesday, 24 April 2012
SSgA expands LDI range of funds State Street Global Advisors (SSgA), the investment management business of State Street Corporation (NYSE:STT), has enhanced its liability driven investing (LDI) strategies with the launch of 10 leveraged gilt funds. The new derivative-based range includes Fixed Gilt Funds with set maturity dates of 2020, 2030, 2040, 2049 and 2060, and Index Linked Gilt Funds set to mature in 2022, 2032, 2042, 2055 and 2062. SSgA also offers physical-based Single Stock Gilt Funds in its LDI range. These include Fixed Gilt Funds with maturity dates of December 2049, December 2055 and January 2060; and Index Linked Gilt Funds with maturity dates of November in the years 2027, 2032, 2037, 2042, 2047, 2050, 2055 and 2062. http://www.ftseglobalmarkets.com/

State Street Global Advisors (SSgA), the investment management business of State Street Corporation (NYSE:STT), has enhanced its liability driven investing (LDI) strategies with the launch of 10 leveraged gilt funds. The new derivative-based range includes Fixed Gilt Funds with set maturity dates of 2020, 2030, 2040, 2049 and 2060, and Index Linked Gilt Funds set to mature in 2022, 2032, 2042, 2055 and 2062. SSgA also offers physical-based Single Stock Gilt Funds in its LDI range. These include Fixed Gilt Funds with maturity dates of December 2049, December 2055 and January 2060; and Index Linked Gilt Funds with maturity dates of November in the years 2027, 2032, 2037, 2042, 2047, 2050, 2055 and 2062.

The new funds funds are aimed at offering pension schemes and institutional investors a way to extend inflation- and interest-rate protection in their liability-matching portfolios. The leveraged nature of these funds help provide further flexibility for schemes by allowing a smaller initial investment, thereby freeing capital to allocate according to a portfolio’s growth objectives.“These new funds are part of a broader product build-out of our LDI offering. Combined with the existing set of physical bond strategies, including single stock bond funds, SSgA now offers pensions schemes and institutional investors exceptional breadth for extending inflation- and interest-rate protection on their liability-matching portfolios. The leveraged funds provide extra flexibility for schemes to focus on building asset growth in line with their overall investment objectives,” says Susan Raynes, head of the UK, Middle East and Africa at SSgA.

The Single Stock and Leveraged Gilt funds can be used in tailored combinations to suit the objectives and risk tolerances of a scheme. They complement SSgA’s conventional bond index funds, enabling investors to structure stable and cost-effective hedging portfolios.



 

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