Barclays “craptacular” MBS loans (TWTW – Dec 19-23, 2016)

Craptacular – The descriptive adopted by consultants, looking at Barclays sales in the MBS arena between 2005 and 2007 . The UK bank rejected a settlement with the US’s DoJ, daring it to sue, with the Department of Justice promptly obliging. This is in contrast with Deutsche Bank, which settled, and many others, including JPMorgan Chase, which earlier settled as well.

As for Deutsche Bank, some expressed concerns about the uncomfortable and rather poor optics of political appointees having to make decisions related to banks the President elect Donald Trump owes a lot of money to, which apparently is the case for the German lender, to the tune of some $300 MM…

Latest Developments:

  • Germany – A terrorist act at a Christmas market in Germany that left 12 dead and many more injured, some critically ended up late Friday, when Italian police killed him in an exchange of gun fire. German intelligence, who apparently knew a lot about him are facing quite a few uncomfortable questions as a result.
  • US FED – Forbes Magazine Editor-in Chief Steve Forbes – Begs to differ with FED Chair Janet Yellen when it comes to her position at the FED until Feb 2018, calling instead for her dismissal asap
  • Trump Appointments – Corporate Financier Carl Icahn – Has been made a special Advisor to President elect Donald J Trump, charged with advising on regulatory reform. Funny how in the immediate aftermath of accepting the role, Carl’s fortune immediately rose $510 MM …
  • Canada –  October 2016 GDP number – Disappointed, and in the process potentially put a possible rate cut by the BoC in early 2017 back on the table. The CAD lost ground as a result…
  • Italy – Italian Bank Monte Paschi – Looks to be failing as far as raising additional capital on its own, with Italy likely having to privatize it as a result. The question is – will that be enough? The other question one might ask is what were they thinking – those who earlier participated in the world’s oldest bank prior equity raises – which all proved insufficient…

Latest market numbers as seen through the ETFs providing exposure to the most commonly referred to benchmarks:

ticker name change ticker name change ticker name change
XIU S&P/TSX 60 0.40% PXG RAFI Global Fundamental 0.76% VCN FTSE Canada All Cap Index ETF 0.55%
XIC S&P/TSX Capped Composite 0.58% PXS RAFI US Fundamental Index 1.19% VCE FTSE Canada Index ETF 0.61%
CRQ RAFI CDN Fundamental 0.33% QQC NASDAQ 100 CAD Hedged 0.26% VUN CRSP US Total Market Index Unhedged 1.68%
XSP S&P 500 CAD Hedged 0.19% PZC RAFI CDN Small-Mid Fundam #N/A VSP S&P 500 CAD Hedged 0.30%
XUS S&P500 1.69% VXC FTSE All-World Ex Canada Index ETF 1.41%
XMU MSCI Min Vol US 1.82% XXM/b Morningstar US Value (Unh) 1.68% VEF FTSE Developed ex North-Am CAD H 0.38%
CLU RAFI US Fund 1000 CAD H 0.46% YXM/b Morningstar US Momentum (Unh) 1.65% VDU FTSE Developed ex North-America 1.43%
XSU Russell 2000 CAD Hedged 0.58% FXM Morningstar CDN Value -1.95% VE FTSE Developed Europe 1.44%
XIN MSCI EAFE CAD Hedged 0.30% WXM Morningstar CDN Momentum 0.34% VA FTSE Developed Asia Pacific 1.45%
XEH MSCI Europe IMI CAD H 0.32% VXM/b Morningstar Intl Value (Unh) 0.30% VEE FTSE Emerging Mkts 0.17%
XEC MSCI EM IMI -0.22% ZXM/b Morningstar Intl Momentum (Unh) 2.41% HAZ Active Global Dividends 2.02%
XMM MSCI Min Vol Emerging -0.58% RWE MSCI Europe Low Risk Weighted (H) 0.43% HHF Morningstar Hedge Fund Index 0.94%
CWO RAFI Broad Emerging 0.44% HMF Auspice Managed Futures 0.78%
CJP RAFI Fundam Japan CAD H 0.14% ZDJ Dow Jones CAD Hedged 0.06% HAC Seasonal Rotation 0.38%
CDZ CDN Div Aristocrats 0.30% ZEQ MSCI Europe High Quality CAD H 0.84% HPR Active Preferred Shares 0.35%
week of: Dec 19-23, 2016 Source: ETFinsight/Bloomberg

Weekly Volumes for the week of Dec 19-23, 2016:

Volumes declined notably on the week, with the week ahead set to be even quieter on account of the holidays:

weekly volume data:
Total Volume non-leveraged $4,875,418,521
top 10 Volume non leveraged $2,104,760,953
Total Volume leveraged $1,721,317,893
top 5 Volume leveraged $1,291,121,539
Total Volumes overall: $6,596,736,413
Top 10 + Top 5: $3,395,882,492
top 10 non leveraged % of total nl: 43.2%
top 5 leveraged % of total leveraged 75.0%
Top 10 + Top 5 as % of total traded: 51.5%

iShares – Koesterich: “Inflation is not dead yet“. Turnill: “3 takeaways from a topsy turvy 2016“.

Vanguard – 2017 economic and market outlook: Stabilization, not stagnation

Horizons ETFs – Name changes for the Leveraged ETF line-up => Click HERE! Closure (HTD), amendment (underlying index: HGU/HGD), etc => Click HERE!

First Asset –Meeting of convertible debt ETF convened Feb 23, 2017 to consider merger with a mutual fund with similar objectives => Click HERE! Value and Momentum were neck and neck in the US, Momentum pulled ahead on the international front, while in Canada, Value underperformed, with high volumes traded in FXM.

Other – BMO ETFs – 2016 Capital Gains distributions reinvested => Click HERE!

Upcoming – ETFinsight: I will dispense with the Week that Was in terms of the week of December 26-30 on account of the holidays, with January 2017 Perspectives coming out shortly after New Year’s!

All the best for the holidays!


Top and Bottom performing ETFs for the week of Dec  19-23, 2016:

Ticker Name % Change Avg Price Weekly Volume $ Volume traded
Top Performers week of Dec 19-23, 2016)
XBZ CN Equity iShares MSCI Brazil Index ETF 5.16% $11.77 92,942 $1,084,475
HNY CN Equity Horizons Natural Gas Yield ETF 4.35% $15.89 25,636 $404,781
XGD CN Equity iShares S&P/TSX Global Gold Index ETF 3.28% $11.10 15,419,393 $171,000,028
ZBK CN Equity BMO Equal Weight US Banks Index ETF 3.25% $24.47 682,211 $16,634,711
RPD CN Equity RBC Quant European Dividend Leaders ETF 2.77% $21.48 24,594 $527,436
HUN CN Equity Horizons NYMEX Natural Gas ETF 2.68% $7.10 96,444 $682,713
ZJG CN Equity BMO Junior Gold Index ETF 2.67% $7.18 1,084,635 $7,799,999
RID CN Equity RBC Quant EAFE Dividend Leaders ETF 2.32% $22.58 197,721 $4,449,292
ZIC CN Equity BMO Mid-Term US IG Corporate Bond Index ETF 2.21% $18.81 425,437 $8,013,543
ZGD CN Equity BMO S&P/TSX Equal Weight Global Gold Index ETF 2.20% $8.67 526,336 $4,562,727
Bottom Performers
XCH CN Equity iShares China Index ETF -1.10% $22.65 260,451 $5,923,043
UXM CN Equity First Asset Morningstar US Dividend Target 50 Index ETF -1.36% $13.18 51,970 $687,797
ZEO CN Equity BMO S&P/TSX Equal Weight Oil & Gas Index ETF -1.46% $12.99 994,861 $12,951,443
ZEM CN Equity BMO MSCI Emerging Markets Index ETF -1.52% $16.39 166,401 $2,734,264
FXM CN Equity First Asset Morningstar Canada Value Index ETF -1.95% $14.24 2,876,256 $40,891,522
SVR CN Equity iShares Silver Bullion ETF -2.44% $8.92 411,935 $3,706,245
ZMT CN Equity BMO S&P/TSX Equal Weight Global Base Metals Hedged to CAD Index ETF -2.64% $9.38 460,992 $4,285,451
NXF CN Equity First Asset Energy Giants Covered Call Etf -2.67% $8.53 52,329 $447,357
MXF CN Equity First Asset Can-Materials Covered Call ETF -2.89% $14.69 27,652 $407,177
HUV CN Equity Horizons Betapro S&P 500 VIX Short Term Futures ETF -5.33% $8.63 102,996 $889,385

Top Performing ETFs on the week – to see long suffering Gold related ETFs amongst gainers (US Banks – expected), but also US Corporates (less so) is perhaps what was noteworthy amongst the latest moves across ETFs.

Bottom Performing ETFs on the week –Canadian Value shows up amongst bottom performers, on high volumes. Will there be any predictive value to be derived from this move?

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