Investment Strategy Arbitrage

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  • Dec 8- Worries about bond market liquidity illustrate little more than the fact that if you remove a subsidy, the price goes up. In this case the subsidy was from the public purse to banks, and through them to market liquidity as banks tried to make as much as they could from artificially cheap funding and easy money. "To be sure, to some extent this may reflect the fact...

  • NEW YORK, Dec 7- For Noble Group, a decades-old commodities firm whose founder started out in scrap metal yards, 2015 has been an unusually scrappy year. The Hong Kong- based group, Asia's largest merchant trader of raw goods, has seen its earnings and stock price hurt by plunging metals values and a report that questioned its bookkeeping. "It has been a very good year,...

  • LONDON, Nov 30- The London Metal Exchange has just launched two steel contracts, one for steel scrap and one for steel rebar. It's the second time the LME has tried to expand its dominant franchise in nonferrous metals markets into the ferrous space. The Shanghai Futures Exchange's steel rebar contract is by a considerable margin the most traded ferrous contract...

  • LONDON, Nov 27- The euro's slide against the dollar this year has been a competitive boon for corporate Europe, but it has also opened up an alternative financing window for corporate America. This will be a record year for U.S. companies raising funds in euros, a financing option that should be widely used again next year if the euro weakens further against the...

  • Boom in Japan leveraged ETFs exposes market risk Tuesday, 24 Nov 2015 | 3:10 AM ET

    TOKYO, Nov 24- Japan's main exchange-traded fund, the world's largest, has become so popular with an investment mandate to double returns that it is distorting the Tokyo futures market and exposing stocks to unexpectedly large price swings. The ETF is by far the most actively traded instrument on the stock exchange, with its daily turnover routinely surpassing...

  • LONDON, Nov 24- In a world overflowing with oil, traders are looking to once-secondary markets such as gasoline and diesel for profits, as limited supplies and rapidly changing demand offer the volatility they thrive on. The rise of huge refining hubs in Asia, the Middle East and on the U.S. Gulf Coast has also led to the birth of long supply routes for products that...

  • Delaware judge rules against hedge funds in BMC buyout Wednesday, 21 Oct 2015 | 6:51 PM ET

    WILMINGTON, Del, Oct 21- A Delaware judge on Wednesday rejected hedge fund Merion Capital's attempt to wring an extra $150 million from the 2013 sale of BMC Software Inc by going to court and arguing that a fair deal price should have been much higher. The case stemmed from the sale of BMC to a consortium including Bain Capital and Golden Gate Capital for $46.25 per...

  • *Copper edges up as soft dollar offsets China economy woes. LONDON, Oct 14- Copper steadied on Wednesday as a weaker dollar offset mounting concerns about economic growth in top metals consumer China. "The exchange rate plays a significant role in explaining the price movement," said Peter Fertig of Quantitative Commodity Research.

  • BEIJING, Oct 14- China's foreign exchange market will "soon" extend the trading hours for the yuan to 23:30 local time to overlap with European trading hours, three sources with direct knowledge of the matter said on Wednesday. The change is seen helping Beijing advance its project to encourage more international use of the yuan and support China's case for the...

  • Market rules behind Aug ETF trading issues -BlackRock Wednesday, 7 Oct 2015 | 11:00 AM ET

    NEW YORK, Oct 7- U.S. stock exchange rules designed to protect investors from market routs backfired on Aug. 24, exacerbating a selloff in exchange traded funds, BlackRock Inc said in a report published Wednesday. BlackRock blamed both automated selling by investors and exchange-required trading halts for a dislocation in ETF pricing that morning, when a broad...

  • LONDON, Oct 2- The commodities "supercycle", it is now generally accepted, is over. Slowdown in China, the lynchpin of the whole concept, is turning out to be a lot harder than anyone expected with industrial metal prices sliding across the board. Zinc's "supercycle" price peak of $4,580 per tonne, basis three-month metal on the London Metal Exchange, came in November...

  • Nigeria's oil exports under threat from theft crackdown Tuesday, 29 Sep 2015 | 10:27 AM ET

    *Owners need to guarantee vessels not used for theft. LONDON, Sept 29- Nigeria's latest effort to combat theft could imperil its oil income lifeline, compounding the damage the crude price fall has done to its finances, access to dollars and imports. "Nobody is coming forward for offering the vessel and whoever is willing to go to Nigeria is asking exorbitant rates,"...

  • SHANGHAI, Sept 18- China has intervened repeatedly in foreign exchange markets to stabilise the yuan after it unexpectedly devalued the currency last month, fueling fears of a global currency war. **Sept 18- The People's Bank of China has ordered banks to tighten supervision of clients' foreign exchange deals and strictly check the authenticity of clients' forex...

  • SHANGHAI, Sept 18- China has intervened repeatedly in foreign exchange markets to stabilise the yuan after it unexpectedly devalued the currency last month, fueling fears of a global currency war. **Sept 18- The People's Bank of China has ordered banks to tighten supervision of clients' foreign exchange deals and strictly check the authenticity of clients' forex...

  • SHANGHAI/ HONGKONG, Sept 15- China is extending its control of onshore markets to commodities exchanges, spooked by signs that speculators have shifted from China's volatile stock markets to commodities futures. The country's top commodities exchanges- the Dalian Commodity Exchange, Shanghai Futures Exchange and Zhengzhou Commodity Exchange- were asked...

  • *Rise of China's crude futures expected to be gradual. SINGAPORE, Sept 10- China's push to establish a crude derivatives contract has been met with early skepticism, but oil executives say the country's growing economic influence means a third global crude benchmark is inevitable. And while others have tried and failed, China brings its might as the world's...

  • HONG KONG/ BEIJING, Sept 9- China has instructed banks to bolster management of foreign exchange transactions and identify "abnormal" cross-border fund transfers to ease pressure on capital outflows, two sources told Reuters on Wednesday. The State Administration of Foreign Exchange has released a document, asking banks to pay attention to suspicious FX...

  • *Glencore tackles debt with dividend suspension, share sale. *Glencore shares vs copper: http://link.reuters.com/tut55w. Sept 7- Mining and trading company Glencore acknowledged on Monday the severity of the global commodity market slump as it suspended dividends and said it would sell assets and new shares to cut heavy debts built up through years of rapid...

  • SAFT ON WEALTH-Are hedge funds just pricey and passive? Wednesday, 26 Aug 2015 | 5:11 PM ET

    Aug 26- Investors in hedge funds are likely to be paying for a product more like an index fund than a skill-driven market beater. So finds a new study by Mikhail Tupitsyn and Paul Lajbcygier of Monash University in Australia, who looked at the evidence of 5,580 hedge funds, about half active and half now closed, between 1994 and 2010.. "The question at the heart of this...

  • Why flash crash hit ETFs hard... Tuesday, 25 Aug 2015 | 8:19 AM ET
    Why flash crash hit ETFs hard...

    The system needs to be fixed, says Joe Saluzzi, Themis Trading co-founder, discussing the role of high frequency trading on rapid moves in the market, and how some ETFs were burned by not making the correct price.