By Reuters Staff
2 Min Read
(Reuters) - Global mutual funds and exchange-traded funds (ETFs) that have net short positions in assets including stocks and commodities are the worst performers this year, according to Refinitiv data.
The retail trading frenzy, hopes of U.S. stimulus measures and vaccine roll-outs have lifted prices in several assets and pushed global stocks to record highs.
According to Refinitiv Lipper data, the short-bias funds have declined 10.2% on average and their fund value fell to $26.9 billion at the end of January, from $29.5 billion at the end of 2020.
Direxion Daily S&P Biotech Bear 3X Shares and MicroSectors US Big Oil Index -3X Invrs Lev ETN were the worst performers in the list, shedding over 40% each.
The Bank of Japan must be mindful of the potential demerits of its huge asset purchases, board member Toyoaki Nakamura said in a sign the central bank will seek ways to make its asset-buying programme more flexible in a policy review due in March.
The Bank of Japan must be mindful of the potential demerits of its huge asset purchases, board member Toyoaki Nakamura said in a sign the central bank will seek ways to make its asset-buying programme more flexible in a policy review due in March.
By Reuters Staff
1 Min Read
TOKYO, Feb 10 (Reuters) - Bank of Japan board member Toyoaki Nakamura on Wednesday warned of the potential demerits of the central bank’s huge asset purchases, such as the risk of distorting market functions.
“The BOJ’s exchange-traded funds (ETF) purchases . will remain a necessary tool,” Nakamura said in a speech at an online meeting with business leaders.
“This is not just about ETFs but by buying huge amounts of assets and holding onto them for a prolonged period, the BOJ could affect market functions. That is something we need to be mindful of,” he said. (Reporting by Leika Kihara Editing by Chang-Ran Kim)
4 Min Read
TOKYO (Reuters) - As the coronavirus pandemic stokes fears of deflation, the Bank of Japan is facing changes in its board that could tip the balance in favour of aggressive monetary easing and test the limits of its already stretched policy tool-kit.
FILE PHOTO: A security guard walks past in front of the Bank of Japan headquarters in Tokyo, Japan January 23, 2019. REUTERS/Issei Kato
Parliament approved on Wednesday the government’s nominee Asahi Noguchi, an academic known as a vocal advocate of heavy money printing, to join the BOJ’s nine-member board in April.
He succeeds Makoto Sakurai, who has warned of the rising cost of prolonged easing, when his five-year term ends in March.