Money and Finance
- Links
Latticework of Mental Models: Deprival Super Reaction Tendency (LINK) Hedge Funds Gear Up for Another Big Short [H/T Will] (LINK) Hedge funds are lining up to profit from potential trouble at some “alternative” mutual funds and bond exchange-traded...
- Mf Global Redux As Regulator Says Pfgbest Client Funds Missing
Less than nine months after MF Global's collapse sent shockwaves through U.S. futures brokerages, news that more than half the customer funds at Iowa-based PFGBest are missing is threatening to shatter the fragile confidence in the industry. PFGBest...
- The Dividend-fund Dilemma - By Jason Zweig
Sooner or later, the markets always punish investors who do the right thing for the wrong reason. Some investors in dividend-oriented stock funds might end up learning that lesson the hard way. So far this year, $9 billion has gone into mutual funds and...
- Chaos Over A Plunging Note
Regulators are examining volatile trading in a complex exchange-traded note that caused it to lose 60% of its value in the past week. The Securities and Exchange Commission is looking into the VelocityShares 2x Long VIX Short Term Exchange note, managed...
- Exploding Debt Threatens America – By John Taylor
Something to think about….. I believe the risk posed by this debt is systemic and could do more damage to the economy than the recent financial crisis. To understand the size of the risk, take a look at the numbers that Standard and Poor’s considers....
Money and Finance
Too much of a good thing
The risks created by complicating a simple idea
ANY industry would be proud of an average annual growth rate of 34% over ten years and of a global reach from Austria to Taiwan. But the headlong expansion of exchange-traded funds (ETFs), which by May this year controlled almost $1.5 trillion of assets (not far short of the $2 trillion in hedge funds), has become a matter for concern among financial regulators. Could ETFs be the next source of financial scandal, or even of systemic risk?
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Related paper: Bank for International Settlements (BIS) -“Market Structures and Systemic Risks of Exchange-Traded Funds”
- Links
Latticework of Mental Models: Deprival Super Reaction Tendency (LINK) Hedge Funds Gear Up for Another Big Short [H/T Will] (LINK) Hedge funds are lining up to profit from potential trouble at some “alternative” mutual funds and bond exchange-traded...
- Mf Global Redux As Regulator Says Pfgbest Client Funds Missing
Less than nine months after MF Global's collapse sent shockwaves through U.S. futures brokerages, news that more than half the customer funds at Iowa-based PFGBest are missing is threatening to shatter the fragile confidence in the industry. PFGBest...
- The Dividend-fund Dilemma - By Jason Zweig
Sooner or later, the markets always punish investors who do the right thing for the wrong reason. Some investors in dividend-oriented stock funds might end up learning that lesson the hard way. So far this year, $9 billion has gone into mutual funds and...
- Chaos Over A Plunging Note
Regulators are examining volatile trading in a complex exchange-traded note that caused it to lose 60% of its value in the past week. The Securities and Exchange Commission is looking into the VelocityShares 2x Long VIX Short Term Exchange note, managed...
- Exploding Debt Threatens America – By John Taylor
Something to think about….. I believe the risk posed by this debt is systemic and could do more damage to the economy than the recent financial crisis. To understand the size of the risk, take a look at the numbers that Standard and Poor’s considers....