CBOE Market Volatility Index

Size: px
Start display at page:

Download "CBOE Market Volatility Index"

Transcription

1 HF Investment Note US government reopened and debt ceiling lifted The US Congress finally reached a deal to end the 16-day government shutdown and lifted the debt ceiling in the final hours before the government exhausted its borrowing authority. The deal is again an interim solution as the two parties have to enter negotiations again in early The Republicans bid to leverage on the shutdown in exchange for concessions on Obamacare from the President failed. With the Republicans taking most of the blame in creating the mess, the chance for another similar standoff in early 2014 has diminished as the mid-term election drawing close. Exhibit 1: The market has been calm over the shutdown period 60 CBOE Market Volatility Index Paul Wong, CFA Senior Investment Analyst Harris Fraser Investment Research Harris Fraser Group IMPORTANT LEGAL INFORMATION: The information and materials contained in this report were obtained and / or compiled from sources believed to be reliable and current. However, Harris Fraser cannot and does not warrant, guarantee or represent, either expressly or implied, the accuracy, validity or completeness of the information obtained from third parties. Any directors or employees of Harris Fraser shall not be liable for (whether in tort or contract or otherwise) any damages arising from any person s reliance on this information and shall not be liable for any errors or omissions (including but not limited to errors or omissions made by third party sources) in this information. The information provided herein is subject to change without further notice. Investment involves risks. Past performance is not indicative of future returns. Investors should note that the information provided herein may not have set out all the risks and other significant aspects involved in investing in any products, securities or instruments mentioned herein and should therefore refer to the relevant prospectus for details and are advised to obtain professional advice where appropriate. Page 1 of 5

2 While the US economy took a small knock due to the shutdown, the release of some economic data has been affected. Confidence in some sectors has been affected by the taper fear and shutdown concerns, while the labor markets painted a more mix picture. As expected, the Fed maintained the asset purchase program in its Oct 30 meeting, citing it will continue the program until a more sustained improvement of the labor market. We believe the Fed could start to slow down the program in Mar 2014, after Yellen assumed the role of Fed Chairman. Actual Expectation Surprise Confidence Consumer Confidence U. of Michigan Consumer Sentiment NAHB Housing Market Index Labor Market Initial Jobless Claims Change in Non-Farm Payrolls Page 2 of 5

3 China s Debt Problem Exhibit 2: HK H-shares valuations suppressed The massive stimulus package taken out by the Chinese government in 2008 managed to maintain economic growth, but it is not without cost. With the program mainly financed by debt issued by local governments via its financing vehicles, the Debt to GDP ratio has risen dramatically since then. As the growth in debt outpacing economic growth, the ratio is believed to be at around 160% of GDP back in 2008, and has risen to over 200% in There is no official figure since many of these are raised via different entities and the total amount is obscure. The rapid rise of the ratio in such a short period of time is believed to be a prelude to a significant crisis, as observed in Japan in the 70s to 80s and US before the 2008 crisis. The nonperforming loans ratios in the bank sector remained low at 0.97% during the last quarter, but the market is worried and thus marked down the equity valuation to near crisis level. 30 HK H-shares 12M Forward PE To address the problem, we believe the Chinese authorities would undertake the following measures and we have seen some early signs already: 1. Stall further credit growth Discourage additional bank lending by tightening up liquidity conditions as we have witnessed during June and late October. In addition, banks are being ordered to put wealth management products back onto its loan books. Page 3 of 5

4 2. Roll over existing debt Roll over existing and maturing debt as long as they are servicing and gradually absorb losses via economic growth, inflation and part of the bank profits. 3. Disposal Encourage banks to sell part of their loans to asset management companies or securitizing the loans and sell in the bond market. One of the biggest asset management companies is going to raise capital in Hong Kong and the regulators have expanded a pilot plan of securitization to include also foreign banks China Reforms The market has some expectation on the China s Third Plenum to be held on 9 Nov in terms of economic reforms, especially after a reform blue print issued by a think tank closed to the leaders. While actual reforms details may not be available until weeks after, we explore the possible areas of reforms: 1. Administrative Reduce government s role in the private sector by cutting red tape, unleashing the potential of private investment. Centralize judiciary power so that there is more judiciary independence at the local level with local governments having less intervention into private businesses. 2. Fiscal Promote fairer sharing of revenue between local and central governments so that local governments become less reliant on land revenues. 3. Financial Relax controls in interest rate, exchange convertibility, private capital in banks and municipal bond issuance to promote better risk pricing, more efficient allocation of capital and more transparent markets. 4. Price Enhance market-oriented pricing mechanism in energy, water to improve efficiency of resource allocation. 5. Urbanization Promote better defined rural property rights and clear barriers between the urban and rural land markets. Relaxing birth controls and hukou to allow better flow and development in human capital and allowing rural residents to have a fairer share in China s development. Page 4 of 5

5 Exhibit 3: Multiple symptoms, single disease It is widely accepted that the Chinese economy needs to be reformed in order to take the country s development into the next level. In addition to the reform areas suggested above, another area needs to be addressed is the bloated State Owned Enterprise (SOE) sector. However, it may not be politically feasible to weaken their powers in the current environment. All in all, the fundamental reason of many of the problems is too much regulations, explicit or implicit, by the authorities. Many of the problems are interlocking with each other as shown by the below diagram, which listed a few simplified examples only. Many of these problems have to be addressed simultaneously, which pose a big challenge to the new leaders. Interest Rate Control Few Investment Channels Property Bubble Shadow Banking Bloated Bank Profit Bloated SOE Private Sector Crowded out Low Efficiency, lack Innovation Local Government Finance Land Revenue Infrastructure Investments Too much Regulations Appendix Important Legal Information 1. The information and materials contained in this report were obtained and / or compiled from sources believed to be reliable and current. However, Harris Fraser cannot and does not warrant, guarantee or represent, either expressly or implied, the accuracy, validity or completeness of the information obtained from third parties. Any directors or employees of Harris Fraser shall not be liable for (whether in tort or contract or otherwise) any damages arising from any person s reliance on this information and shall not be liable for any errors or omissions (including but not limited to errors or omissions made by third party sources) in this information. The information provided herein is subject to change without further notice. 2. Investment involves risks. Past performance is not indicative of future returns. Investors should note that the information provided herein may not have set out all the risks and other significant aspects involved in investing in any products, securities or instruments mentioned herein and should therefore refer to the relevant prospectus for details and are advised to obtain professional advice where appropriate. Page 5 of 5

Investment Newsletter The Dragon Code Q2 2015

Investment Newsletter The Dragon Code Q2 2015 Investment Newsletter The Dragon Code Q2 2015 Meet our investment professional Mike Shiao hief Investment Officer, Invesco Hong Kong Biography Mike Shiao is responsible for managing the Greater China (China,

More information

China s Economic Reforms and Growth Prospects. Nicholas Lardy. Anthony M Solomon Senior Fellow. Peterson Institute for International Economics

China s Economic Reforms and Growth Prospects. Nicholas Lardy. Anthony M Solomon Senior Fellow. Peterson Institute for International Economics China s Economic Reforms and Growth Prospects Nicholas Lardy Anthony M Solomon Senior Fellow Peterson Institute for International Economics Paper Prepared for the CF-40 PIIE 2014 Conference Beijing May

More information

6 December 2013. be today. The stimulus measures to rescue the economy after the 2008 crisis saw

6 December 2013. be today. The stimulus measures to rescue the economy after the 2008 crisis saw 6 December 2013 China s local l dbt debt problem calm before the storm, or storm in a teacup? Grace Tam Vice President Global Market Strategist JP J.P. MorganFunds Ian Hui Market Analyst Global Market

More information

Taking stock of China s external debt: low indebtedness, but rapid growth is a concern

Taking stock of China s external debt: low indebtedness, but rapid growth is a concern 1991 1993 1995 1997 1999 21 23 25 27 29 211 213 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 212 213 ECONOMIC ANALYSIS Taking stock of China s external debt: low indebtedness,

More information

Forecasting Chinese Economy for the Years 2013-2014

Forecasting Chinese Economy for the Years 2013-2014 Forecasting Chinese Economy for the Years 2013-2014 Xuesong Li Professor of Economics Deputy Director of Institute of Quantitative & Technical Economics Chinese Academy of Social Sciences Email: xsli@cass.org.cn

More information

THE POTENTIAL MACROECONOMIC EFFECT OF DEBT CEILING BRINKMANSHIP

THE POTENTIAL MACROECONOMIC EFFECT OF DEBT CEILING BRINKMANSHIP OCTOBER 2013 THE POTENTIAL MACROECONOMIC EFFECT OF DEBT CEILING BRINKMANSHIP Introduction The United States has never defaulted on its obligations, and the U. S. dollar and Treasury securities are at the

More information

P A R A G O N CAPITAL MANAGEMENT

P A R A G O N CAPITAL MANAGEMENT Bond Market Overview July 2013 Bonds declined in value last quarter as interest rates rose by the most in over two years. The increase was a function of economic surprises, Federal Reserve policy confusion,

More information

China s Local Government Debt: Not (Yet) As Bad As It Seems

China s Local Government Debt: Not (Yet) As Bad As It Seems China s Local Government Debt: Not (Yet) As Bad As It Seems British Embassy Beijing April 2014 Summary China s local government debt situation is often cited as a likely source of future economic instability.

More information

Monetary policy, fiscal policy and public debt management

Monetary policy, fiscal policy and public debt management Monetary policy, fiscal policy and public debt management People s Bank of China Abstract This paper touches on the interaction between monetary policy, fiscal policy and public debt management. The first

More information

Fixed Income Liquidity in a Rising Rate Environment

Fixed Income Liquidity in a Rising Rate Environment Fixed Income Liquidity in a Rising Rate Environment 2 Executive Summary Ò Fixed income market liquidity has declined, causing greater concern about prospective liquidity in a potential broad market sell-off

More information

lakyara vol.181 China starting to regulate shadow banking Takeshi Jingu 11. November. 2013

lakyara vol.181 China starting to regulate shadow banking Takeshi Jingu 11. November. 2013 lakyara China starting to regulate shadow banking Takeshi Jingu 11. November. 2013 Executive Summary Chinese shadow banking is largely market-driven financial innovation. While Chinese regulators have

More information

Please note the Weekly Market Commentary will be on hiatus until January 5, 2014.

Please note the Weekly Market Commentary will be on hiatus until January 5, 2014. Weekly Market Commentary: December 16, 2013 Will 2014 Bring An End to Central Bank Intervention? Please note the Weekly Market Commentary will be on hiatus until January 5, 2014. Economic Data - Previous

More information

Demystifying the Chinese Housing Boom

Demystifying the Chinese Housing Boom Demystifying the Chinese Housing Boom Hanming Fang University of Pennsylvania & NBER Paper presented at the International Symposium on Housing and Financial Stability in China. Hosted by the Chinese University

More information

China s Unwinding Stock Market Bubble

China s Unwinding Stock Market Bubble China s Unwinding Stock Market Bubble The Chinese equity market is experiencing significant volatility, exhibiting the classic signs of a bubble fueled by changing government regulation. Chinese authorities

More information

Statement by. Janet L. Yellen. Chair. Board of Governors of the Federal Reserve System. before the. Committee on Financial Services

Statement by. Janet L. Yellen. Chair. Board of Governors of the Federal Reserve System. before the. Committee on Financial Services For release at 8:30 a.m. EST February 10, 2016 Statement by Janet L. Yellen Chair Board of Governors of the Federal Reserve System before the Committee on Financial Services U.S. House of Representatives

More information

Global high yield: We believe it s still offering value December 2013

Global high yield: We believe it s still offering value December 2013 Global high yield: We believe it s still offering value December 2013 02 of 08 Global high yield: we believe it s still offering value Patrick Maldari, CFA Senior Portfolio Manager North American Fixed

More information

China's debt - latest assessment SUMMARY

China's debt - latest assessment SUMMARY China's debt - latest assessment SUMMARY China s debt-to-gdp ratio continues to increase despite the slowing economy. A convincing case can be made that the situation is manageable: the rate of credit

More information

Will 2014 Bring an End to Central Bank Intervention?

Will 2014 Bring an End to Central Bank Intervention? Will 2014 Bring an End to Central Bank Intervention? December 17, 2013 by Chris Maxey, Ryan Davis of Fortigent Please note the Economic and Market Update will be on hiatus until January 5, 2014. Stocks

More information

Financial Objectives Well on Way to Being Matched

Financial Objectives Well on Way to Being Matched Scotia Capital Financials Summit 2004 Réal Raymond President and CEO Toronto, September 14, 2004 Financial Objectives Well on Way to Being Matched Excellent positioning for year end 2004 Objectives Q3

More information

CIO Flash Chinese equities: what happens next? July 8, 2015

CIO Flash Chinese equities: what happens next? July 8, 2015 CIO Flash Chinese equities: what happens next? July 8, 2015 +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH Market falls force

More information

Q1 1990 Q1 1996 Q1 2002 Q1 2008 Q1

Q1 1990 Q1 1996 Q1 2002 Q1 2008 Q1 August 2015 Canada s debt burden By Richard J. Wylie, CFA Vice-President, Investment Strategy, Assante Wealth Management Much ink has been spilled over the past several years regarding the extent of the

More information

investment activities

investment activities lakyara Deregulation of Chinese insurers' investment activities Takeshi Jingu 10. January. 2013 Executive Summary In 2012, the Chinese insurance industry experienced a slowdown in premium revenue growth

More information

Securities Finance: Fixed Income & Repo Market Update

Securities Finance: Fixed Income & Repo Market Update MARKETS GROUP Securities Finance: Fixed Income & Repo Market Update Key Highlights from a Panel Discussion Fixed income and repo market participants are adapting to new regulations and fiscal realities

More information

Min. Investment Class A Units Initial: USD 1,000 Additional: USD 250

Min. Investment Class A Units Initial: USD 1,000 Additional: USD 250 Issuer: PineBridge Investments Ireland Limited Product Key Facts PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund 22 February 2013 This statement provides you with key information about

More information

Understanding the Risk of China s Local Government Debts and Its Linkage with Property Markets

Understanding the Risk of China s Local Government Debts and Its Linkage with Property Markets Understanding the Risk of China s Local Government Debts and Its Linkage with Property Markets Yongheng Deng National University of Singapore Paper presented at the International Symposium on Housing and

More information

SECTION 7 DEBT MANAGEMENT POLICY LAS VEGAS VALLEY WATER DISTRICT FISCAL YEAR 2015-16 OPERATING AND CAPITAL BUDGET

SECTION 7 DEBT MANAGEMENT POLICY LAS VEGAS VALLEY WATER DISTRICT FISCAL YEAR 2015-16 OPERATING AND CAPITAL BUDGET SECTION 7 DEBT MANAGEMENT POLICY LAS VEGAS VALLEY WATER DISTRICT FISCAL YEAR 2015-16 OPERATING AND CAPITAL BUDGET In Accordance With NRS 350.013 June 30, 2015 7-1 Table of Contents Introduction... 7-3

More information

The Positive Role of Audit in Public Debt Management in China

The Positive Role of Audit in Public Debt Management in China The Positive Role of Audit in Public Debt Management in China (for the 1 st ASOSAI-EUROSAI Joint Conference) September 2011, Turkey By Dr. DONG Dasheng, the first Deputy Auditor Introduction Since 2008,

More information

Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges

Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Zhang Ying, Senior Economist In recent years, as the internationalization of the RMB has been steadily carrying out,

More information

Introductory Guide to RMB Currency Futures

Introductory Guide to RMB Currency Futures Introductory Guide to RMB Currency Futures RMB Internationalisation The opening up of Mainland China now is creating more and more business opportunities. China is the second largest economy and a major

More information

Trading FX Options Getting the Big Picture Right Anticipating Event Risk Identifying Catalysts Expressing the View

Trading FX Options Getting the Big Picture Right Anticipating Event Risk Identifying Catalysts Expressing the View Trading FX Options Getting the Big Picture Right Anticipating Event Risk Identifying Catalysts Expressing the View By: Bryan Rich Founder FXTraderProfessional.com Copyright 2014 Logic Fund Management,

More information

SUB: STANDARD CHARTERED PLC (THE "COMPANY") STOCK EXCHANGE ANNOUNCEMENT

SUB: STANDARD CHARTERED PLC (THE COMPANY) STOCK EXCHANGE ANNOUNCEMENT April 26, 2016 To, Ms. D'souza AVP, Listing Department National Stock Exchange of India Exchange Plaza Bandra Complex Bandra (East) 400 001 Limited SUB: STANDARD CHARTERED PLC (THE "COMPANY") STOCK EXCHANGE

More information

Are Bonds Going to Outperform Stocks Over the Long Run? Not Likely.

Are Bonds Going to Outperform Stocks Over the Long Run? Not Likely. July 2009 Page 1 Are Bonds Going to Outperform Stocks Over the Long Run? Not Likely. Given the poor performance of stocks over the past year and the past decade, there has been ample discussion about the

More information

Global Financials Update April 13, 2012

Global Financials Update April 13, 2012 Global Financials Update April 13, 2012 Global Market Update After posting a fairly strong and consistent rally over much of the last six months, the global equity markets have changed course over the

More information

Debt Deleveraging: The Chinese Way

Debt Deleveraging: The Chinese Way PERSPECTIVES Debt Deleveraging: The Chinese Way March 2 Key Insights Monica Defend Head of Global Asset Allocation Research Qinwei Wang, PhD Economist Global Asset Allocation Research Edited by Claudia

More information

FX Flash. CNH: Pressured By The Equity Rout. MACRO FX RESEARCH China. 9 Jul 2015

FX Flash. CNH: Pressured By The Equity Rout. MACRO FX RESEARCH China. 9 Jul 2015 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 MACRO FX RESEARCH China D 9 Jul 2015 FX Flash CNH: Pressured By The Equity Rout USDCNH touched a high of 6.2291 on Wed. The persistent decline

More information

Bond Market Perspectives

Bond Market Perspectives LPL FINANCIAL RESEARCH Bond Market Perspectives 20, 20 Municipals Bloom Amid Drought Anthony Valeri, CFA Market Strategist LPL Financial Highlights Limited new issuance and Treasury market strength have

More information

Bond Markets in Emerging Asia: Progress, Challenges, and ADB Work Plan to Support Bond Market Development. Asian Development Bank

Bond Markets in Emerging Asia: Progress, Challenges, and ADB Work Plan to Support Bond Market Development. Asian Development Bank Bond Markets in Emerging Asia: Progress, Challenges, and ADB Work Plan to Support Bond Market Development Asian Development Bank November 2009 A. Noy Siackhachanh Advisor Office of Regional Economic Integration

More information

of asset securitization in China

of asset securitization in China lakyara Significance of restart of asset securitization in China Takeshi Jingu 10. September. 2013 Executive Summary Resumed asset securitization is garnering attention in China. With adequate information

More information

A Checklist for a Bond Market Sell-off

A Checklist for a Bond Market Sell-off A Checklist for a Bond Market Sell-off New Zealand Fixed Income Monthly Commentary February 2013 Christian@harbourasset.co.nz +64 4 460 8309 Just like 2011 and 2012, the start of a new year has again prompted

More information

Monthly Economic Dashboard

Monthly Economic Dashboard RETIREMENT INSTITUTE SM Economic perspective Monthly Economic Dashboard Modest acceleration in economic growth appears in store for 2016 as the inventory-caused soft patch ends, while monetary policy moves

More information

Product Key Facts. PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund. 22 December 2014

Product Key Facts. PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund. 22 December 2014 Issuer: PineBridge Investments Ireland Limited Product Key Facts PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund 22 December 2014 This statement provides you with key information about

More information

The S&P 500 and Asian investors

The S&P 500 and Asian investors The S&P 500 and Asian investors CME Group s Flagship S&P 500 Equity Index Futures Contract July 2015 Equity Index Futures on the S&P 500 CME Group s flagship equity index product CME Group E-mini S&P 500

More information

Five Things To Know About Shares

Five Things To Know About Shares Introduction Trading in shares has become an integral part of people s lives. However, the complex world of shares, bonds and mutual funds can be intimidating for many who still do not know what they are,

More information

HOUSING FINANCE IN TRANSITION ECONOMIES

HOUSING FINANCE IN TRANSITION ECONOMIES HOUSING FINANCE IN TRANSITION ECONOMIES OECD Workshop Warsaw, Poland December 5-6, 5 2002 Loïc Chiquier The World Bank 1 Challenge in Transition Economies! Key for growth, poverty, wealth (75 wealth),

More information

MACROECONOMIC AND INDUSTRY ANALYSIS VALUATION PROCESS

MACROECONOMIC AND INDUSTRY ANALYSIS VALUATION PROCESS MACROECONOMIC AND INDUSTRY ANALYSIS VALUATION PROCESS BUSINESS ANALYSIS INTRODUCTION To determine a proper price for a firm s stock, security analyst must forecast the dividend & earnings that can be expected

More information

https://ui.constantcontact.com/visualeditor/visual_editor_preview.jsp?agent.uid=1115992...

https://ui.constantcontact.com/visualeditor/visual_editor_preview.jsp?agent.uid=1115992... Page 1 of 6 Having trouble viewing this email? Click here Volume 10 - Issue 2 December 2013 This Issue: Top Reasons to Buy Stocks in 2014 Top Reasons to Buy Stocks in 2014 In-Kind RMD Distribution 50%

More information

CIO Flash Chinese equities: what happens next? July 8, 2015

CIO Flash Chinese equities: what happens next? July 8, 2015 CIO Flash Chinese equities: what happens next? July 8, 2015 +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH Market falls force

More information

S&P 500 Composite (Adjusted for Inflation)

S&P 500 Composite (Adjusted for Inflation) 12/31/1820 03/31/1824 06/30/1827 09/30/1830 12/31/1833 03/31/1837 06/30/1840 09/30/1843 12/31/1846 03/31/1850 06/30/1853 09/30/1856 12/31/1859 03/31/1863 06/30/1866 09/30/1869 12/31/1872 03/31/1876 06/30/1879

More information

r a t her t han a s a f e haven

r a t her t han a s a f e haven r a t her t han a s a f e haven For Professional Advisers only - not for onward distribution Investors exposure to gold continues to grow but we believe that more consideration of the risks is needed.

More information

THE TRUE RISK OF CHINA S A-SHARE SAGA

THE TRUE RISK OF CHINA S A-SHARE SAGA For professional investors 22 July 2015 1 CHI TIME THE TRUE RISK OF CHINA S A-SHARE SAGA The stock market has predicted nine out of the last five recessions Paul A. Samuelson The 32% correction in the

More information

Lecture 16: Financial Crisis

Lecture 16: Financial Crisis Lecture 16: Financial Crisis What is a Financial Crisis? A financial crisis occurs when there is a particularly large disruption to information flows in financial markets, with the result that financial

More information

Fixed Income Market Comments

Fixed Income Market Comments Strategy Fixed Income Weekly Fixed Income Market Comments Weaker economic data and comments from a couple of Federal Reserve Board Governors, who tend to not to speak often as the Federal Reserve District

More information

The New FDIC Insurance Premium Assessments: A Better Way Scott Hein and Timothy Koch April 6, 2009

The New FDIC Insurance Premium Assessments: A Better Way Scott Hein and Timothy Koch April 6, 2009 The New FDIC Insurance Premium Assessments: A Better Way Scott Hein and Timothy Koch April 6, 2009 Effective January 1, 2009 the FDIC increased the annual insurance assessment rate by 7 basis points applied

More information

Altamont Wealth Management

Altamont Wealth Management Altamont Wealth Management Second Quarter 2013 Performance To an imagination of any scope the most far-reaching form of power is not money, it is the command of ideas. Oliver Wendall Holmes Jr. Second

More information

Update on HKEx Equity Derivatives Market. Derivatives Trading Global Markets Division 24 April 2015

Update on HKEx Equity Derivatives Market. Derivatives Trading Global Markets Division 24 April 2015 Update on HKEx Equity Derivatives Market Derivatives Trading Global Markets Division 24 April 215 Exchange Participants Global Distribution Distribution of the Origins of HKFE Exchange Participants America

More information

Annual Management Report of Fund Performance. Management Discussion of Fund Performance. Mawer Canadian Bond Fund. Results of Operations

Annual Management Report of Fund Performance. Management Discussion of Fund Performance. Mawer Canadian Bond Fund. Results of Operations Annual Management Report of Fund Performance For the Year Ended December 31, 2014 This annual management report of fund performance contains financial highlights but does not contain the complete annual

More information

Econ 330 Exam 1 Name ID Section Number

Econ 330 Exam 1 Name ID Section Number Econ 330 Exam 1 Name ID Section Number MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) If during the past decade the average rate of monetary growth

More information

Bond Market Insights July 15, 2015

Bond Market Insights July 15, 2015 Bond Market Insights July 15, 2015 by Jerry Wiesner, CFA and Stephen Frahm General Bond Market Treasury yields rose during the second quarter as prices fell. The yield curve steepened, as long yields rose

More information

SPECIAL COMMENTARY. Yen Carry Trade: Fact or Fiction? January 25, 2007. Jay H. Bryson, Global Economist jay.bryson@wachovia.

SPECIAL COMMENTARY. Yen Carry Trade: Fact or Fiction? January 25, 2007. Jay H. Bryson, Global Economist jay.bryson@wachovia. Yen Carry Trade: Fact or Fiction? Jay H. Bryson, Global Economist jay.bryson@wachovia.com 1-704-383-3518 Executive Summary Many commentators point to the so-called yen carry trade, in which investors borrow

More information

Why Treasury Yields Are Projected to Remain Low in 2015 March 2015

Why Treasury Yields Are Projected to Remain Low in 2015 March 2015 Why Treasury Yields Are Projected to Remain Low in 5 March 5 PERSPECTIVES Key Insights Monica Defend Head of Global Asset Allocation Research Gabriele Oriolo Analyst Global Asset Allocation Research While

More information

OUR HISTORY, RESTRUCTURING AND OPERATIONAL REFORM

OUR HISTORY, RESTRUCTURING AND OPERATIONAL REFORM OUR HISTORY We were established in 1951 as an agricultural cooperative bank. In the 1950s, as a specialized subsidiary bank of the PBOC, we assumed the functions of organizing and promoting rural financial

More information

UNITED KINGDOM. United Kingdom

UNITED KINGDOM. United Kingdom UNITED KINGDOM Growth has slowed, and is projected to be 1¾ per cent in 216. Uncertainty about the outcome of the end-june 216 referendum, which could lead to an exit of the United Kingdom from the European

More information

Semi-Annual Management Report of Fund Performance

Semi-Annual Management Report of Fund Performance Semi-Annual Management Report of Fund Performance BMO Private Canadian Short-Term Bond Portfolio (formerly, BMO Harris Canadian Short-Term Bond Portfolio) For the period ended June 30, 2015 This semi-annual

More information

Social Insurance Coverage in Urban China. John Giles Dewen Wang

Social Insurance Coverage in Urban China. John Giles Dewen Wang Social Insurance Coverage in Urban China John Giles Dewen Wang Overview Social insurance schemes in Urban China Trends in social insurance coverage Regional variation Micro evidence of social insurance

More information

LIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS

LIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS APRIL 2014 LIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS Most economists talk about where the economy is headed it s what they do. Paying attention to economic indicators can give you an idea of

More information

State of Michigan 457 Plan. Financial Report September 30, 2013

State of Michigan 457 Plan. Financial Report September 30, 2013 Financial Report September 30, 2013 Table of Contents Independent Auditor s Report 3 Management s Discussion and Analysis 6 Basic Financial Statements Statement of Plan Net Position 12 Statement of Changes

More information

DEUTSCHE ASSET & WEALTH MANAGEMENT REAL ESTATE OUTLOOK

DEUTSCHE ASSET & WEALTH MANAGEMENT REAL ESTATE OUTLOOK Research Report DEUTSCHE ASSET & WEALTH MANAGEMENT REAL ESTATE OUTLOOK Second Quarter 2013 Economic Outlook Business and consumer spending to drive recovery Quantitative easing beginning its expected unwinding

More information

Economic and Investment Overview First Quarter, 2011

Economic and Investment Overview First Quarter, 2011 Economic and Investment Overview First Quarter, 2011 Atlantic Trust Private Wealth Management includes Atlantic Trust Company, a division of Invesco National Trust Company (a limited-purpose national trust

More information

Developing Kenya s Mortgage Market

Developing Kenya s Mortgage Market Developing Kenya s Mortgage Market Simon Walley Senior Housing Finance Specialist World Bank 17 February, 2011 - Nairobi Outline Rationale for developing the mortgage market Mortgage Market Summary Housing

More information

Thoughts on the 2014 aluminum outlook viewed from the macro context. Edward Meir Senior Independent Commodity Consultant FCStone, LLC

Thoughts on the 2014 aluminum outlook viewed from the macro context. Edward Meir Senior Independent Commodity Consultant FCStone, LLC Thoughts on the 2014 aluminum outlook viewed from the macro context Edward Meir Senior Independent Commodity Consultant FCStone, LLC Disclaimer Fare clic per modificare gli stili del testo dello schema

More information

Toto, I ve a feeling we re not in Kansas anymore... Dorothy, Wizard of Oz, 1939

Toto, I ve a feeling we re not in Kansas anymore... Dorothy, Wizard of Oz, 1939 April 21, 2016 Page 1 of 6 Toto, I ve a feeling we re not in Kansas anymore.... Dorothy, Wizard of Oz, 1939 Ever since the financial crisis of 2008 09, economic trends in the U.S. and in many foreign countries

More information

Financial Wellness & Education. Understanding mutual funds

Financial Wellness & Education. Understanding mutual funds Financial Wellness & Education Understanding mutual funds Benefits of mutual funds Foresters Financial Services provides everyday families and individuals with financial solutions, guidance and tools,

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. ECON 4110: Sample Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Economists define risk as A) the difference between the return on common

More information

U.S. Fixed Income: Potential Interest Rate Shock Scenario

U.S. Fixed Income: Potential Interest Rate Shock Scenario U.S. Fixed Income: Potential Interest Rate Shock Scenario Executive Summary Income-oriented investors have become accustomed to an environment of consistently low interest rates. Yields on the benchmark

More information

Financial Planning in a Low Interest Rate Environment: The Good, the Bad and the Potentially Ugly

Financial Planning in a Low Interest Rate Environment: The Good, the Bad and the Potentially Ugly Financial Planning in a Low Interest Rate Environment: The Good, the Bad and the Potentially Ugly In June of 2012, the 10 year Treasury note hit its lowest rate level in history when it fell to 1.62%.

More information

P2P in China. Will State Banks Maintain Control?

P2P in China. Will State Banks Maintain Control? Orient Capital Research June 11, 2015 Orient Capital Research Andrew Collier, Managing Director 852-9530-4348 andrew@collierchina.com Juilice Zhou, Analyst, Shanghai Tommy Pang, Analyst, Macau P2P in China

More information

2013 Mergers & Acquisitions Survey Results

2013 Mergers & Acquisitions Survey Results Exceptional service. Dykema delivers. www.dykema.com California Illinois Michigan Minnesota North Carolina Texas Washington, D.C. Executive Summary Moving slowly forward, but moving forward The expression:

More information

Capital Markets Review

Capital Markets Review Capital Markets Review Second Quarter Capital Markets Review Consumer Data Consumer Delinquencies: down from previously reported US Personal Savings Rate: down from previously reported Consumer Credit:

More information

Year Two. World Report

Year Two. World Report Year Two The global economy is now a little more than one year into the economic and stock market recoveries that have occurred since the Lehman shock of September 2008. After that credit crisis triggered

More information

Subnational Borrowing Framework Lili Liu Lead Economist Economic Policy and Debt Department

Subnational Borrowing Framework Lili Liu Lead Economist Economic Policy and Debt Department International Seminar on Building New Countryside and Promoting Balanced Regional Development for a Harmonious Society Haikou, China 2006 年 8 月 21-26 日 Subnational Borrowing Framework Lili Liu Lead Economist

More information

CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET ( GEM ) OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE STOCK EXCHANGE )

CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET ( GEM ) OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE STOCK EXCHANGE ) CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET ( GEM ) OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE STOCK EXCHANGE ) GEM has been positioned as a market designed to accommodate companies to which a

More information

Finding the Right Fit with Commercial Mortgages

Finding the Right Fit with Commercial Mortgages Finding the Right Fit with Commercial Mortgages Key Takeaways Mortgages provide strong risk-adjusted return potential Investors can implement mortgages as a stand-alone alternative or integrated bond exposure

More information

High yield bonds. US senior loans update. begin on page 4.

High yield bonds. US senior loans update. begin on page 4. Chief Investment Office WM 20 March 2014 High yield bonds US senior loans update Barry McAlinden, CFA, strategist, UBS FS barry.mcalinden@ubs.com, +1 212 713 3261 Loan performance can best be characterized

More information

QE, Credit Markets and Bubbles

QE, Credit Markets and Bubbles Spring 2014 QE, Credit Markets and Bubbles David Zervos Chief Market Strategist dzervos@jefferies.com +1 212 323 7586 US Monetary Base 4.5 4 3.5 QE3 3 Trillion USD 2.5 2 QE2 1.5 QE1 1 0.5 Operation Twist

More information

An Overview of the US Closed-End Fund Market. By Paul Mazzilli

An Overview of the US Closed-End Fund Market. By Paul Mazzilli An Overview of the US Closed-End Fund Market By Paul Mazzilli Introduction Closed-end funds (CEFs) are professionally managed investment companies that offer investors various unique benefits. They offer

More information

The Coming Volatility

The Coming Volatility The Coming Volatility Lowell Bolken, CFA Vice President and Portfolio Manager Real estate Securities June 18, 2015 www.advantuscapital.com S&P 500 Percent Daily Change in Price September 2008 to April

More information

PRIVATE WEALTH MANAGEMENT COMPANIES

PRIVATE WEALTH MANAGEMENT COMPANIES PRIVATE WEALTH MANAGEMENT COMPANIES (SPFs) www.bdo.lu 2 Private Wealth Management Companies (SPFs) TABLE OF CONTENT FOREWORD 3 1. INTRODUCTION 4 2. ACTIVITIES OF AN SPF 2.1 Permitted activities...5 2.2

More information

DBS BANK (HONG KONG) LIMITED

DBS BANK (HONG KONG) LIMITED DBS BANK (HONG KONG) LIMITED INTERIM FINANCIAL DISCLOSURE STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2004 TABLE OF CONTENTS Page Unaudited consolidated profit and loss account 2 Unaudited consolidated

More information

Renminbi Depreciation and the Hong Kong Economy

Renminbi Depreciation and the Hong Kong Economy Thomas Shik Acting Chief Economist thomasshik@hangseng.com Renminbi Depreciation and the Hong Kong Economy If the recent weakness of the renminbi persists, it is likely to have a positive direct impact

More information

Clint M. Hanni Partner Corporate Section of the Business Services Group

Clint M. Hanni Partner Corporate Section of the Business Services Group How to Negotiate Effectively with Your to Restructure a Loan PRESENTED BY: Clint M. Hanni Partner Corporate Section of the Business Services Group May 26, 2010 11:30 a.m. 1 p.m. Stoel Rives LLP One Utah

More information

Rating Methodology by Sector. Life Insurance

Rating Methodology by Sector. Life Insurance Last Updated: March 26, 2012 Rating Methodology by Sector Life Insurance *This rating methodology is a modification of the rating methodology made public on July 13, 2011, and modifications are made to

More information

Prospect Capital Corporation (NASDAQ: PSEC)

Prospect Capital Corporation (NASDAQ: PSEC) Analyst Rating About Prospect Capital Corporation Prospect Capital Corporation (Prospect Capital) is a financial services company that lends to and invests in middle market privately-held companies. The

More information

Emerging markets (%)

Emerging markets (%) Insights Emerging Markets Understanding the risks October 21 Please visit jpmorgan.com/institutional for access to all of our Insights publications. Emerging markets offer compelling long-term return potential,

More information

DISCLOSEABLE TRANSACTION GRANT OF LOAN TO FUZE ENTERTAINMENT

DISCLOSEABLE TRANSACTION GRANT OF LOAN TO FUZE ENTERTAINMENT Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness

More information

Rating Methodology by Sector. Non-life Insurance

Rating Methodology by Sector. Non-life Insurance Last updated: March 26, 2012 Rating Methodology by Sector Non-life Insurance *This rating methodology is a modification of the rating methodology made public on July 13, 2011, and modifications are made

More information

Project LINK Meeting New York, 20-22 October 2010. Country Report: Australia

Project LINK Meeting New York, 20-22 October 2010. Country Report: Australia Project LINK Meeting New York, - October 1 Country Report: Australia Prepared by Peter Brain: National Institute of Economic and Industry Research, and Duncan Ironmonger: Department of Economics, University

More information

FAR EAST HORIZON (BBB- (S)) Strong Earnings Growth With Asset Quality In Good Position

FAR EAST HORIZON (BBB- (S)) Strong Earnings Growth With Asset Quality In Good Position FAR EAST HORIZON (BBB- (S)) Strong Earnings Growth With Asset Quality In Good Position NET YTM is at 5.23% as at 13 January 2014 Market Recognition of Far East Horizon s business Far East Horizon is a

More information

Financial Statement Analysis: An Introduction

Financial Statement Analysis: An Introduction Financial Statement Analysis: An Introduction 2014 Level I Financial Reporting and Analysis IFT Notes for the CFA exam Contents 1. Introduction... 3 2. Scope of Financial Statement Analysis... 3 3. Major

More information

Invesco s Senior Loan Platform. May 2012. Scott Baskind Senior Portfolio Manager 0000000. Presented by:

Invesco s Senior Loan Platform. May 2012. Scott Baskind Senior Portfolio Manager 0000000. Presented by: Invesco s Senior Loan Platform May 2012 Presented by: Scott Baskind Senior Portfolio Manager 0000000 Bank Loans are Trading Cheap to Historic Levels % Par Average Bank Loan Bid Source: Standard & Poor

More information

Standard Chartered today releases its Interim Management Statement for the third quarter of 2015.

Standard Chartered today releases its Interim Management Statement for the third quarter of 2015. Standard Chartered PLC Interim Management Statement 3 November 2015 Standard Chartered today releases its Interim Management Statement for the third quarter of 2015. Bill Winters, Group Chief Executive,

More information