International Mutual Funds Capital Flow Volatility And Contagion A Survey

Author : Mr.R. Gelos
Publisher : International Monetary Fund
Page : 29 pages
File Size : 43,6 Mb
Release : 2011-04-01
Category : Business & Economics
ISBN : 9781455253319

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International Mutual Funds, Capital Flow Volatility, and Contagion – A Survey by Mr.R. Gelos Pdf

Gaining a better understanding of the behavior of international investors is key for informing the debate about the optimal response to capital flows and about reforms to the international financial architecture. In this context, recent research on the behavior of international mutual funds at the micro level has expanded our knowledge about the drivers of portfolio flows and the mechanisms behind the transmission of financial shocks across countries. This paper provides a brief survey of this literature, with a focus on the empirical evidence for emerging markets. Overall, the behavior of international mutual funds is complex and overly simplistic characterizations are misleading. However, there is broad-based evidence for momentum trading among funds. Moreover, funds tend to avoid opaque markets and assets, and this behavior becomes more pronounced during volatile times. Portfolio rebalancing mechanisms are clearly important in explaining contagion patterns, even in the absence of common macroeconomic fundamentals. From a surveillance point of view, this implies that monitoring the exposures of large investors at a micro level is crucial to assess vulnerabilities.

Author : Gaston Gelos
Publisher : Unknown
Page : 128 pages
File Size : 47,5 Mb
Release : 2011
Category : Electronic
ISBN : OCLC:838941499

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International Mutual Funds, Capital Flow Volatility, and Contagion by Gaston Gelos Pdf

Author : Anonim
Publisher : Academic Press
Page : 800 pages
File Size : 45,8 Mb
Release : 2012-12-31
Category : Business & Economics
ISBN : 9780124058996

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The Evidence and Impact of Financial Globalization by Anonim Pdf

The sharp realities of financial globalization become clear during crises, when winners and losers emerge. Crises usher in short- and long-term changes to the status quo, and everyone agrees that learning from crises is a top priority. The Evidence and Impact of Financial Globalization devotes separate articles to specific crises, the conditions that cause them, and the longstanding arrangements devised to address them. While other books and journal articles treat these subjects in isolation, this volume presents a wide-ranging, consistent, yet varied specificity. Substantial, authoritative, and useful, these articles provide material unavailable elsewhere. Substantial articles by top scholars sets this volume apart from other information sources Rapidly developing subjects will interest readers well into the future Reader demand and lack of competitors underline the high value of these reference works

Author : Stijn Claessens,Kirsten Forbes
Publisher : Springer Science & Business Media
Page : 461 pages
File Size : 45,9 Mb
Release : 2013-04-17
Category : Business & Economics
ISBN : 9781475733143

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International Financial Contagion by Stijn Claessens,Kirsten Forbes Pdf

No sooner had the Asian crisis broken out in 1997 than the witch-hunt started. With great indignation every Asian economy pointed fingers. They were innocent bystanders. The fundamental reason for the crisis was this or that - most prominently contagion - but also the decline in exports of the new commodities (high-tech goods), the steep rise of the dollar, speculators, etc. The prominent question, of course, is whether contagion could really have been the key factor and, if so, what are the channels and mechanisms through which it operated in such a powerful manner. The question is obvious because until 1997, Asia's economies were generally believed to be immensely successful, stable and well managed. This question is of great importance not only in understanding just what happened, but also in shaping policies. In a world of pure contagion, i.e. when innocent bystanders are caught up and trampled by events not of their making and when consequences go far beyond ordinary international shocks, countries will need to look for better protective policies in the future. In such a world, the international financial system will need to change in order to offer better preventive and reactive policy measures to help avoid, or at least contain, financial crises.

Author : International Monetary Fund. Monetary and Capital Markets Department
Publisher : International Monetary Fund
Page : 162 pages
File Size : 49,8 Mb
Release : 2015-04-15
Category : Business & Economics
ISBN : 9781475547580

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Global Financial Stability Report, April 2015 by International Monetary Fund. Monetary and Capital Markets Department Pdf

The current report finds that, despite an improvement in economic prospects in some key advanced economies, new challenges to global financial stability have arisen. The global financial system is being buffeted by a series of changes, including lower oil prices and, in some cases, diverging growth patterns and monetary policies. Expectations for rising U.S. policy rates sparked a significant appreciation of the U.S. dollar, while long term bond yields in many advanced economies have decreased—and have turned negative for almost a third of euro area sovereign bonds—on disinflation concerns and the prospect of continued monetary accommodation. Emerging markets are caught in these global cross currents, with some oil exporters and other facing new stability challenges, while others have gained more policy space as a result of lower fuel prices and reduced inflationary pressures. The report also examines changes in international banking since the global financial crisis and finds that these changes are likely to promote more stable bank lending in host countries. Finally, the report finds that the asset management industry needs to strengthen its oversight framework to address financial stability risks from incentive problems between end-investors and portfolio managers and the risk of runs due to liquidity mismatches.

Author : Jasmine Xiao
Publisher : International Monetary Fund
Page : 33 pages
File Size : 44,5 Mb
Release : 2015-05-13
Category : Business & Economics
ISBN : 9781475589542

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Domestic and Foreign Mutual Funds in Mexico by Jasmine Xiao Pdf

This paper utilizes a new dataset of foreign and domestic mutual funds in Mexico to assess their behavior and obtains three new findings. First, foreign mutual funds are more sensitive to global financial conditions and engage more in herding and positive feedback trading than domestic mutual funds, notably during episodes of market stress. Second, the behavior of foreign funds differs substantially across types of funds: bond funds are more sensitive to global factors and engage more in positive feedback trading than equity funds; funds sold to retail investors, open-end funds, small funds, and regional funds also appear to be less stable sources of capital flows. Third, there is indicative evidence that foreign funds’ trading behavior is associated with higher local market volatilities, notably in periods of market stress; however, domestic mutual fund investors played some mitigating role.

Author : Thorsten Beck,Ross Levine
Publisher : Edward Elgar Publishing
Page : 616 pages
File Size : 55,6 Mb
Release : 2018-07-27
Category : Business & Economics
ISBN : 9781785360510

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Handbook of Finance and Development by Thorsten Beck,Ross Levine Pdf

This Handbook provides a comprehensive overview of the relationship between financial and real sector development. The different chapters, written by leading contributors in the field, survey research on the importance of financial development for economic growth, the causes and consequences of financial fragility, the historic development of financial systems in several major economies and regions of the world, and the regulatory and supervisory underpinnings of financial sector development.

Author : Mr.Serkan Arslanalp,Mr.Takahiro Tsuda
Publisher : International Monetary Fund
Page : 25 pages
File Size : 44,5 Mb
Release : 2015-12-17
Category : Business & Economics
ISBN : 9781513559223

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Emerging Market Portfolio Flows by Mr.Serkan Arslanalp,Mr.Takahiro Tsuda Pdf

Portfolio flows to emerging markets (EMs) tend to be correlated. A possible explanation is the role global benchmarks play in allocating capital internationally, the so-called “benchmark effect.” This paper finds that benchmark-driven investors indeed play a large role in a key segment of the market—the EM local currency government bond market—, accounting for more than one third of total foreign holdings as of end-2014. We find that the prominence of these investors declined somewhat after the May 2013 taper tantrum, but remain high. This distinction is important in understanding the drivers of EM capital flows and their sensitivity to different types of shocks. In particular, a high share of benchmark-driven investors may result in capital flows that are more sensitive to global shocks and less sensitive to country factors.

Author : Mr.Luis Brandao-Marques,Mr.R. Gelos,Hibiki Ichiue,Ms.Hiroko Oura
Publisher : International Monetary Fund
Page : 36 pages
File Size : 40,5 Mb
Release : 2015-12-28
Category : Business & Economics
ISBN : 9781513555560

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Changes in the Global Investor Base and the Stability of Portfolio Flows to Emerging Markets by Mr.Luis Brandao-Marques,Mr.R. Gelos,Hibiki Ichiue,Ms.Hiroko Oura Pdf

An analysis of mutual-fund-level flow data into EM bond and equity markets confirms that different types of funds behave differently. Bond funds are more sensitive to global factors and engage more in return chasing than equity funds. Flows from retail, open-end, and offshore funds are more volatile. Global funds are more stable in their EM investments than “dedicated” EM funds. Differences in the stability of flows from ultimate investors play a key role in explaining these patterns. The changing mix of global investors over the past 15 year has probably made portfolio flows to EMs more sensitive to global financial conditions.

Author : Rajat Kathuria,Neetika Kaushal Nagpal
Publisher : Springer
Page : 265 pages
File Size : 49,7 Mb
Release : 2015-11-23
Category : Business & Economics
ISBN : 9788132226987

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Global Economic Cooperation by Rajat Kathuria,Neetika Kaushal Nagpal Pdf

This book discusses issues such as global financial crisis and global governance, food security, energy sustainability, the global financial system, trade and protectionism, and growth and employment. Since the outbreak of the financial as well as national debt crises in the Euro zone, the focus of the G20 has shifted back to addressing short-term issues. These issues range from the dynamic effects of global imbalances and the appropriate degree of financial sector regulation to questions of austerity versus growth and the lack of a comprehensive framework for managing the international monetary system. A further issue is the relevance of the G20 agenda for emerging market economies. Global economic recovery still remains fragile and downside risks to global growth remain. Additionally, much of the agenda of the Seoul Development Consensus for shared growth launched in 2010 has yet to be fulfilled. A key discussion point in the book, therefore, is how to make a tangible and significant difference in peoples’ lives by implementing an agenda of inclusive growth.​

Author : Takuji Kinkyo,Takeshi Inoue,Shigeyuki Hamori
Publisher : World Scientific
Page : 232 pages
File Size : 46,9 Mb
Release : 2016-01-06
Category : Business & Economics
ISBN : 9789814713412

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Financial Linkages, Remittances, and Resource Dependence in East Asia by Takuji Kinkyo,Takeshi Inoue,Shigeyuki Hamori Pdf

' The purpose of this book is to empirically analyse the multifaceted nature of financial linkages in East Asia and to discuss the key policy challenges faced by the region''s economies. Although the emphasis is placed on East Asia, some of the chapters cover a broader area of countries depending on the aim of the study. Particular areas of focus in these studies include: the evolution of cross-border financial linkages in East Asia; long-run economic consequences of remittance inflows and natural resource dependence; and policy priorities for the financial integration and management of resource-rich economies. Contents:The Evolution of Cross-Border Financial Linkages in East Asia:Asia-Pacific Economic Linkages: Empirical Evidence in the GVAR Framework (Wang Chen and Takuji Kinkyo)Linkages Among East Asian Stock Markets, US Financial Markets Stress, and Gold (Takashi Miyazaki and Shigeyuki Hamori)Business Cycle Volatility and Hot Money in Emerging East Asian Markets (Xiaojing Cai and Shigeyuki Hamori)Long-Run Economic Consequences of Remittance Inflows and Natural Resource Dependence:Dynamic Impacts of Remittances on Economic Growth in Asia: Evidence from the Dynamic Heterogeneous Panel (Nannan Yuan, Takeshi Inoue and Shigeyuki Hamori)Effects of Remittances on Poverty Reduction in Asia (Takeshi Inoue and Shigeyuki Hamori)Financial Development and Growth in Resource-Rich Countries (Kazue Demachi and Takuji Kinkyo)Policy Priorities for the Financial Integration and Management of Resource-Rich Economies:Spillovers of Financial Stress Shocks: Evidence and Policy Implications (Wang Chen and Takuji Kinkyo)Challenges to Macroeconomic Management in Resource–Rich Developing Economies (Kazue Demachi and Takuji Kinkyo)Policies and Prospects of ASEAN Financial Integration (Satoshi Shimizu) Readership: Advanced undergraduate or postgraduate students studying Asian economics (particularly East Asian economics). Keywords:Financial Linkages;Remittances;Natural Resources;Financial Development;Financial Integration;Economic Growth;Business Cycle;Poverty Reduction;East Asia;ASEAN'

Author : The World Bank
Publisher : World Bank Publications
Page : 208 pages
File Size : 47,9 Mb
Release : 2015-08-31
Category : Business & Economics
ISBN : 9781464804717

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Global Financial Development Report 2015/2016 by The World Bank Pdf

Global Financial Development Report 2015/2016 focuses on the ability of financial systems to sustainably extend the maturity of financial contracts for private agents. The challenges of extending the maturity structure of finance are often considered to be at the core of effective, sustainable financial development. Sustainably extending long-term finance may contribute to the objectives of higher growth and welfare, shared prosperity and stability in two ways: by reducing rollover risks for borrowers, thereby lengthening the horizon of investments; and by increasing the availability of long-term financial instruments, thereby allowing households to address their lifecycle challenges. The aim of the report is to contribute to the global policy debate on long-term finance. It builds upon findings from recent and ongoing research, lessons from operational work, as well as on inputs from financial sector professionals and researchers both within and outside the World Bank Group. Benefitting from new worldwide datasets and information on financial development, it will provide a broad and balanced review of the evidence and distill pragmatic lessons on long-term finance and related policies. This report, the third in the Global Financial Development Report series, follows the second issue on Financial Inclusion and the inaugural issue, Rethinking the Role of the State in Finance. The Global Financial Development Report 2015/2016 will be accompanied by a website worldbank.org/financialdevelopment containing extensive datasets, research papers, and other background materials as well as interactive features.

Author : Michael I. C. Nwogugu
Publisher : Springer
Page : 696 pages
File Size : 47,8 Mb
Release : 2019-03-09
Category : Business & Economics
ISBN : 9781137447012

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Indices, Index Funds And ETFs by Michael I. C. Nwogugu Pdf

Indices, index funds and ETFs are grossly inaccurate and inefficient and affect more than €120 trillion worth of securities, debts and commodities worldwide. This book analyzes the mathematical/statistical biases, misrepresentations, recursiveness, nonlinear risk and homomorphisms inherent in equity, debt, risk-adjusted, options-based, CDS and commodity indices – and by extension, associated index funds and ETFs. The book characterizes the “Popular-Index Ecosystems,” a phenomenon that provides artificial price-support for financial instruments, and can cause systemic risk, financial instability, earnings management and inflation. The book explains why indices and strategic alliances invalidate Third-Generation Prospect Theory (PT3), related approaches and most theories of Intertemporal Asset Pricing. This book introduces three new decision models, and some new types of indices that are more efficient than existing stock/bond indices. The book explains why the Mean-Variance framework, the Put-Call Parity theorem, ICAPM/CAPM, the Sharpe Ratio, Treynor Ratio, Jensen’s Alpha, the Information Ratio, and DEA-Based Performance Measures are wrong. Leveraged/inverse ETFs and synthetic ETFs are misleading and inaccurate and non-legislative methods that reduce index arbitrage and ETF arbitrage are introduced.

Author : Mr.Maria Soledad Martinez Peria,Mr.Sergio L. Schmukler
Publisher : International Monetary Fund
Page : 28 pages
File Size : 53,6 Mb
Release : 2017-04-26
Category : Business & Economics
ISBN : 9781475595758

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Understanding the Use of Long-term Finance in Developing Economies by Mr.Maria Soledad Martinez Peria,Mr.Sergio L. Schmukler Pdf

This short paper reviews recent literature on the use of long-term finance in developing economies (relative to advanced ones) to identify where long-term financing occurs, and what role different financial intermediaries and markets play in extending this type of financing. Although banks are the most important providers of credit, they do not seem to offer long-term financing. Capital markets have grown since the 1990s and can provide financing at fairly long terms. But few firms use these markets. Only some institutional investors provide funding at long-term maturities. Governments might help to expand long-term financing, although with limited policy tools.

Author : Colin P. Mayer,Stefano Micossi,Marco Onado,Marco Pagano,Andrea Polo
Publisher : Oxford University Press
Page : 425 pages
File Size : 47,8 Mb
Release : 2018
Category : Business & Economics
ISBN : 9780198815815

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Finance and Investment by Colin P. Mayer,Stefano Micossi,Marco Onado,Marco Pagano,Andrea Polo Pdf

Bringing together leading researchers from around the world, Finance and Investment considers the causes for the persistently low level of investment in Europe, examining the extent to which the financial system is a contributory factor and identifying possible remedies.