Early figures from the first months of 2020 suggest hedge funds have so far performed better than stocks. Funds lost 3.04% in January and February, data from the Backstop BarclayHedge database show, against an S&P 500 decline of 8.27%, while Hedge Fund Research figures for all of Q1 show average falls of 7% against roughly 20% for the benchmark index.
Use of supertankers to store millions of barrels of unsold oil until the price increases is developing into a lucrative strategy, as traders use the futures market to sell cargo forward for potentially large profits. Traders expect such profits to continue, even if Saudi Arabia and Russia decrease production.
The Federal Reserve's intervention is generating recovery in certain markets, but markets outside the central bank's purview, such as high-yield bonds, leveraged loans and mortgage bonds not backed by the government, are expected to continue to struggle.
TD Ameritrade says its millennial-age clients were quick to retreat from their equities positions when markets plunged in March. A measurement of the brokerage's millennial clients' stock-market exposure fell below the average for its broader client base for the first ever during the rout.
JPMorgan Chase has announced a plan to acquire its local partner's minority stake in their China International Fund Management joint venture. The Chinese government's decision to lift restrictions on foreign control as of April 1 has paved the way for the firm to hold 100% ownership.
The supply of gold is expected to catch up with demand as production resumes in Switzerland. Three big refineries closed because of the coronavirus pandemic say they have received permission from authorities to reopen.
Environmental, social and governance strategies provided investment funds with relative safety from market turbulence during March, according to Morningstar. UK funds put in the strongest showing, with the average ESG fund losing 14%, compared with 16.8% for the average non-ESG fund.
The New York Stock Exchange has asked the Securities and Exchange Commission to waive a requirement that companies maintain a certain share price over 30 trading days, saying some firms might be noncompliant because of the market rout spurred by the coronavirus pandemic. "We are committed to advocating on behalf of our issuers during these challenging economic times and continue to speak with the SEC staff about this and other proposed rule changes," NYSE spokesman Farrell Kramer says.
The Market Information Data Analytics System, an interim database from the Securities and Exchange Commission used for monitoring swings in trading, has fallen short in providing accurate and timely data and has even broken down during trading surges, SEC documents indicate. A system that was to be installed last year is not expected to be operational until 2022. Meanwhile, market data has gotten more expensive, according to a study by SIFMA.
The Basel Committee on Banking Supervision and the International Organization of Securities Commissions have postponed implementation of the final two phases of margin requirements for noncleared derivatives by 12 months because of the coronavirus outbreak.
Congress has passed three stimulus packages to combat the severe effects of the global COVID-19 pandemic. In the second of a three-part series on how COVID-19 is impacting the financial markets, we explain each of the three phases of the stimulus, what matters most for the financial markets, and what might lie ahead.
In light of recent market dislocations, SIFMA Research is tracking daily market metrics across equities, listed options and various fixed income and securitized products markets. Additionally, we show trends for 1Q 2020.