Finding Potential Yield in ETF Securities Lending
For a few years now, the song has remained essentially the same for institutional asset owners and the managers with whom they partner – cost pressure squeezes them incessantly, and with high valuations and low yields, meeting return expectations is a more elusive and difficult goal to achieve. To potentially add incremental portfolio performance and offset some holding costs, investors and managers have looked to perhaps the most versatile tool they can leverage: Exchange Traded Funds (ETFs), and the potential securities lending benefits they can provide.
How securities lending works, and transaction mechanics
Securities lending is a well-established practice in which an investor who owns a security temporarily loans the security to a borrower in exchange for a fee. The lender retains all economic interests of the security, and therefore maintains exposure to the security’s performance for the life of the loan. Because the t
Bitcoin s Flexibility Good Fit for Consumers and Investors in Digital Age
On 1/21/21 at 3:53 PM EST
Bitcoin, once viewed as a curiosity reserved for digital age pioneers, economic swashbucklers, the aggressively offbeat or the gullible, is going mainstream. By one estimate, about 50 million investors worldwide traded Bitcoin and other crypto-currencies in 2019.
Bitcoin has attracted the attention of both Wall Street analysts who expect further price appreciation and regulators who are issuing stern warnings that investors should be prepared to lose all their money.
Despite the risk, various media outlets have reported that Russell Okung, an offensive lineman with the Carolina Panthers, converts half of his $13 million annual NFL salary to Bitcoin with each paycheck through an internet conversion system (Okung did not respond to a request by Newsweek for an interview made through the team and his agent).
January 21, 2021
While stocks and index ETFs are rallying today amid the inauguration of President Joe Biden and strong corporate earnings, at least one financial pundit feels the future is more uncertain.
Billionaire investor Leon Cooperman told CNBC on Wednesday that he envisions a more challenging environment for stocks and index ETFs in the years ahead, after the market’s strong recovery from pandemic-era lows in the last 10 months.
“I think the near-term outlook is probably OK. Long term, I think that we’re borrowing from the future,” Cooperman said on “Squawk Box.”
“Whenever you bought into the market when it was selling at the present multiple of, say, 22 times or higher, you’ve never really made any serious money one year, three year, five years out. I think that’s what we’re looking at,” added the chairman of the Omega Family Office.
Netflix shares advanced 17.9% on Wednesday, touching an all-time high. NFLX makes up 4.7% of VOX’s underlying portfolio, 4.7% of PBS, and 4.7% of FDN.
Netflix shares is experiencing its biggest daily gain since it closed up 19% in October 2016, CNBC reports.
The media streaming service is rallying after it revealed in its Q4 2020 earnings report that it was considering stock buybacks and had surpassed 200 million subscribers for the first time.
“We’ve gone from a historical bear on NFLX to a card-carrying bull,” Wells Fargo analysts said in a note, upgrading its price target to on NFLX. At least 15 other firms also raised their price targets.