Monday, June 9, 2014

Tuesday June 10 Housing and Economic stories


Worries of a Bank-Loan-ETF Exodus Mount - (online.wsj.com) Investors have been pulling money out of exchange-traded funds backed by bank loans, once again raising concerns about the ability of lightly traded financial markets to handle a big exodus from ETFs. Leveraged-loan ETFs last month had three consecutive weekly net withdrawals, together valued at $107.5 million, marking the only such streak of investors pulling money out of the group since the first bank-loan ETF was launched in 2011, according to Lipper. Recent outflows are a reversal from the record inflows that loan funds soaked up last year. It is a swing that is raising concerns about the impact that money flowing out of the funds could have on the market for these loans, made to risky companies, that underlie the ETFs. While an ETF's shares trade in real time, like regular stocks, it is much harder for that ETF to buy or sell loans in the portfolio. It can take weeks for a trade to be completed and, unlike in a traditional mutual fund, an index-tracking ETF will have less discretion over which loans to sell.

Questions raised about notary signatures in foreclosure cases - (www.freep.com) Detroit Legal News clerk Chris Fahgren’s notarized signature appeared on dozens of legal documents required for posting public foreclosure notices in the newspaper in late December 2009 and early 2010. But Fahgren was in a coma at the time, following a Dec. 21, 2009, car accident. Even after she died on Jan. 4, 2010, her signature — dated and notarized — continued to show up in legal documents for more than three weeks, including one dated Jan. 30, 2010. Fahgren had pre-signed and notarized stacks of documents ahead of time and a co-worker later added the appropriate date when it came time to publish a foreclosure ad, according to testimony in a later lawsuit. It was an admittedly illegal, but routine procedure, the co-worker testified, done to expedite the thousands of foreclosure ads being published monthly during the height of the housing crisis. Many of those ads came from the Farmington Hills law firm run by David Trott, who had part ownership in Detroit Legal News Publishing and who at the time was getting paid a $500,000 yearly consulting fee by the newspaper.

China’s Casino-to-Internet Bust Deepens as ChiNext Sinks - (www.bloomberg.com) Chinese stock investors are running out of places to hide. First, it was the Macau casinos, which began tumbling in January after an average 217 percent rally in the previous two years. Then came the selloff in Internet shares, which dragged down Tencent Holdings Ltd. and Sina Corp. more than 15 percent since March. Small-cap stocks were the latest to buckle, with the ChiNext Index entering a bear marketlast week. The few pockets of strength in the $3.2 trillion stock market are disappearing as China’s weakening economy reduces investor appetite for even the fastest-growing companies. All 10 industry groups in the CSI 300 Index of mainland-traded shares have retreated this year while just 1 percent of the 170 Chinese stock funds tracked by Bloomberg recorded gains, versus more than 70 percent last year.

China confronts U.S. ambassador after accusations of cyberspying - (www.reuters.com) China summoned the U.S. ambassador after the United States accused five Chinese military officers of hacking into American companies to steal trade secrets, warning Washington it could take further action, the foreign ministry said on Tuesday. The U.S. Ambassador to China, Max Baucus, met with Zheng Zeguang, assistant foreign minister, on Monday shortly after the United States charged the five Chinese, accusing them of hacking into American nuclear, metal and solar companies to steal trade secrets. Zheng "protested" the actions by the United States, saying the indictment had seriously harmed relations between both countries, the foreign ministry said in a statement on its website.

Russia Close to $400 Billion Gas Pipeline Deal in Pivot to China - (www.bloomberg.com) Russia is close to signing a decades-long contract to supply natural gas to China at a price that would value the deal at about $400 billion, according to Prime Minister Dmitry Medvedev. Medvedev’s boss Vladimir Putin arrives in Shanghai today to try and complete an agreement after more than 10 years of talks. The stumbling block has been price, but with Putin facing trade and financial sanctions from the U.S. and European Union after he annexed Crimea from Ukraine, a deal is seen as probable. “It’s time we reached an agreement with the Chinese on this issue,” Medvedev said in a Bloomberg Television interview in Moscow yesterday. “It is very likely that there will be a contract, which means long-term contracts.”





No comments: