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rffrydr
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rffrydr
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Location: Sunny California
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 Posted: Fri May 28, 2010 1:11 pm Post subject: |
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Some flow info:
| Quote: | Equity Fund Outflows from Wed 19th to 26th -$16.7B; xETFs – Equity Fund
Outflows -$5.3B
NH
Talking to our bond desk on the AMG data. They suggest that HY showed net
outflows of $1.35B over the same period – anything >$500M is considered
extremely excessive…2 weeks ago it was $1.7bn, which was the 2nd largest on
record.
NH
Clearly a lot of money coming out of the market. In Europe during the height
of the financial crisis, investors worldwide pulled out of equities and moved
into government debt. The ECB figures to March last year show that eurozone
debt benefited from safe haven flows, from inside as well as outside the
eurozone. Foreign investors pulled out of eurozone equities, but invested
heavily in debt instruments while eurozone investors repatriated funds. The
decline in net portfolio investment inflows from the 12 months to March 2009
to March this year was mainly due to the fact that eurozone residents stopped
repatriating funds.
NH
Eurozone investment in foreign equity and bond instruments amounted to €214.7B in the year to March, which was still more than outweighed by the
€421.1B in foreign investment in eurozone equities and bond instruments in
the eurozone.
NH
- There are no signs as yet that the debt crisis is leading to a renewed drying
up of the interbank money market or that a credit crunch is hampering
investment and overall growth. However, most data in Europe is only available
through March, and with uncertainty remaining high and market confidence not
fully restored this AMG data may be a leading indicator of a further drying
up of liquidity ahead for the Eurozone.
- LINK: http://www.amgdata.com/ |
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rffrydr
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| Posted: Mon May 24, 2010 10:35 am Post subject: |
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An "old" quote I posted in the "indexing" thread:
| Quote: | | A market with just two players, where if one wants to sell an asset the other always wants to buy it, is liquid. A market with 10,000 players, where each uses best-of-breed valuations systems based on publicly available data and best-practice mark-to-market accounting and risk systems, is one where when one player wants to sell an asset, so will everyone else. This market is bigger, yet thinner. The global financial system is naturally diverse. There are young savers and old pensioners, the wealthy with money to punt and the poor with little to risk. Adopting common fair-value accounting and risk systems collapses this heterogeneity into a one-dimensional world of “current price”. Today, when prices drop in a volatile manner, it does not draw out bargain hunters; it brings out forced sellers as accounting write-downs and risk systems dictate asset disposals. Price declines feed price declines.... |
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rffrydr
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rffrydr
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rffrydr
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rffrydr
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Location: Sunny California
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| Posted: Sun May 09, 2010 10:02 am Post subject: |
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| Quote: | However, as I understand it
BE
When the NYSE gets hammered triggers an auction
BE
Which they call a liquidity replenishment point, or LRP
BE
It’s intended to slow trading down, take a time out
BE
Give everyone a breather
BE
But, of course, it’s only the NYSE that has this safety trigger.
BE
So instead of taking a breather, the robots reroute orders to the smaller exchanges, which are overwhelmed by the sudden volume
NH
(Stomper )
BE
And don’t have the same safeguards the NYSE has in place.
BE
And, because the minor exchanges have no liquidity, they start pricing orders against stub quotes
BE
Which are nominal backstop prices that are never intended to be used.
BE
That’s why we saw P&G and Accenture and the like trading for small change.
BE
And why we saw a huge redirect of volume away from the NYSE.
BE
Here’s the Bloomberg data on that
BE
More than 29.4 billion shares changed hands in U.S. markets yesterday, the most since October 2008. In addition to traditional exchanges such as the NYSE, rivals Bats Global Markets Inc. in Kansas City and Jersey City, New Jersey-based Direct Edge LLC handled millions of trades. About 2.6 billion shares traded on the NYSE, the lowest level relative to overall volume in three years, data compiled by Bloomberg show.
BE
Of course, the question remains as to why was the NYSE swamped in the first place.
NH
29.4bn shares
NH
xxx
BE
That’s the question.
BE
We have to ask whether this huge swamping of the NYSE and the redirect to side channels was an accident or deliberate.
BE
Although obviously, we can’t answer that.
BE
That’s for the SEC to answer.
NH
and Nasdaq traded all the way through this
NH
although they cancelled stocks at the end
BE
Yup. Had to cancel orders on 260-off stocks.
BE
Amyway, that’s all a hypothesis.
BE
I’ll be interested to read any other theorising. |
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rffrydr
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| Posted: Sun May 09, 2010 5:57 am Post subject: |
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rffrydr
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rffrydr
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