ETFs are investment funds that can be traded on stock exchanges like ordinary
shares. ETFs' liquidity depends on several factors, including the liquidity of the
underlying securities and the structures put in place by the ETF issuer to facilitate trading. In this expert opinion Grégoire Blanc, head of capital markets at Lyxor Asset Management, responds to frequently asked questions on the topic of ETF liquidity.
According to Schroders Azad Zangana, European Economist and Chris Ames, Senior Fixed Income Portfolio Manager, the cut in interest rates is totally irrelevant. Due to the glut of liquidity in money markets, short-term interest rates have been below the ECB's main financing rate for some time – meaning that the latest cut will have near zero impact.
Petercam's Peter de Coensel has increased his exposure to financial bonds as the asset class offers safety and value from a credit perspective, the manager said.
The remainder of 2013 is setting up for further gains
and hedge funds are positioned to take advantage of the
opportunities. The US economy is expanding steadily
and growth will likely accelerate in the 2nd half of the year
as fiscal restraint wears off.
Some of the banks that qualify for a potential split under draft legislation agreed by the German government last week may choose to stop the restricted activities rather than incur the costs of separation, as the affected businesses make relatively small contributions to earnings, Fitch Ratings says.