SLCG Economic Consulting's Logo

Resources

Blog

Our experts frequently write blog posts about the findings of the research we are conducting.

Filter by:

Clear All

Displaying 10 out of 81 results for "Puerto Ricof=Informational Post".

Copper ETP Market Review

(Dec 2012)

Last week we described how a physical copper ETF might lead to a copper shortage and disruption of world commodities markets. This week we wanted to review the copper ETP market in a bit more detail to get an idea of what is currently being offered.

There are seven US ETPs available with exposure primarily to the copper market. These include:

Why a Physical Copper ETF Might be a Really Big Deal

(Dec 2012)

JP Morgan recently obtained approval by the SEC to launch a new copper ETF that, instead of holding derivatives linked to copper, will actually accumulate physical copper itself. While this may not seem like a thrilling market development, there are serious concerns that if this ETF becomes popular and garners significant assets, the world market for copper might be upended. Here's why:

Think of demand for copper as having two components: demand for industrial or productive uses and demand as...

Derivatives in Active ETFs

(Dec 2012)

Over two and a half years ago, the SEC initiated a moratorium on approvals for new ETFs that made extensive use of derivatives such as options and futures contracts. Much of the concern at that time was that derivatives-based ETFs, particularly leveraged, inverse, and futures-based ETFs may not have investor protections or oversight commensurate with their level of risk. Regular readers of this blog know that we have spent a good deal of time discussing those issues in addition to our ...

SEC Litigation Releases: Week in Review - December 14th, 2012

(Dec 2012)

SEC Charges Massachusetts Company, CEO and Promoters With $9 Million Securities Fraud
December 14, 2012, (Litigation Release No. 22572)
According to the complaint (opens to PDF), BioChemics, Inc., its CEO, John Masiz, and two individuals paid to solicit investors, Craig Medoff and Gregory Kroning, "made false statements to investors about collaborations with major pharmaceutical companies and the status and results of drug trials of [BioChemic's] main product." Additionally, the SEC claims...

CFTC Chief Economist Finds High Frequency Trading Harms Traditional Investors

(Dec 2012)

Andrei Kirilenko, chief economist at the Commodity Futures Trading Commission (CFTC), recently released a report that purports to show that the "high-speed trading firms that have come to dominate the nation's financial markets are taking significant profits from traditional investors" according to an article posted by Global Association of Risk Professionals (GARP) as well as the New York Times.

The report categorizes HFT firms as 'aggressive', 'mixed' or 'passive' depending upon the...

IBM Switches to Annual 401(k) Contributions

(Dec 2012)

The Associated Press recently posted a story concerning IBM's effort to cut costs by switching from regular contributions to employees' 401(k) accounts on each paycheck to a lump-sum contribution at the end of each year. This move, clearly in the best interest of shareholders, has real and significant implications to the 401(k) accounts of IBM employees. According to the article, only a minority of companies use this type of arrangement.

About 7 percent of employers offering 401(k)s make...

Structured Products Highlight: Citigroup ELKS Linked to YAHOO!

(Dec 2012)

Today we're highlighting a structured product issued on May 25, 2011 by Citigroup. This product (CUSIP: 17317U501) is an Equity LinKed Security (ELKS) linked to Yahoo! (YHOO).

ELKS are similar to reverse exchangeables in that the notes pay periodic coupons (monthly at an annualized rate of 9.50% in this case) and protect principal on a limited basis (if YHOO's price remains above the $13.08 trigger during the term of the note). In contrast to reverse exchangeables, once a trigger event occurs...

Deliverable Interest Rate Swap Futures

(Dec 2012)

Interest rate swaps are important tools used by many financial and non-financial firms to manage their interest rate exposure. Earlier this week, the CME Group launched a new derivative product called Deliverable Interest Rate Swap Futures with the contention that the product offers "maximum efficiency for managing interest rate exposure." This move is close in spirit to the recent move by the Eris Exchange to offer interest rate swaps on an open exchange. Both of these products are designed...

PowerShares to List Actively Managed Downside Hedged S&P ETF

(Dec 2012)

Late last week, Invesco PowerShares filed a form N-1A registration statement with the SEC to list an exchange traded fund (ETF) with exposure to the S&P 500 with downside exposure actively hedged through VIX futures contracts. The PowerShares S&P 500 Downside Hedged Portfolio (PHDG) seeks to "achieve positive total returns in rising or falling markets that are not directly correlated to broad equity or fixed income market returns" and has annual operating expenses of about 39 basis points....

Structured Products Highlight: JP Morgan Reverse Exchangeable Linked to Ford

(Dec 2012)

Today we're highlighting a structured product issued on January 19, 2012 by JP Morgan. This product (CUSIP: 48125VHZ6) is a Reverse Exchangeable linked to Ford Motor Company (F). Investors who purchased the notes were exposed to the possibility that JP Morgan would default on the obligations spelled out in the note's offering documents.

This particular note offered investors monthly coupons at an annualized rate of 11.25% for the six month term of the note. If, during the term of the notes,...

81 Results

Display: