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Displaying 10 out of 38 results for "Short".

Copper ETP Market Review

(Dec 2012)

Last week we described how a physical copper ETF might lead to a copper shortage and disruption of world commodities markets. This week we wanted to review the copper ETP market in a bit more detail to get an idea of what is currently being offered.

There are seven US ETPs available with exposure primarily to the copper market. These include:

Auction Rate Securities Responsible for $9.6 Billion Loss to Taxpayers

(Dec 2012)

In a complaint filed in Nevada against Goldman Sachs last year, the city of Reno states that it issued $73.45 million of Auction Rate Securities (ARS) in 2005 and $137.43 million ARS in 2006 on the advice of Goldman. Like many other municipalities, Reno subsequently saw the market crash in 2008 and yields skyrocket, leading to a $9.6 billion loss for issuers.

The ARS structure was promoted by Goldman as liquid, cash-equivalent investments that would allow Reno to borrow money for long term...

Why a Physical Copper ETF Might be a Really Big Deal

(Dec 2012)

JP Morgan recently obtained approval by the SEC to launch a new copper ETF that, instead of holding derivatives linked to copper, will actually accumulate physical copper itself. While this may not seem like a thrilling market development, there are serious concerns that if this ETF becomes popular and garners significant assets, the world market for copper might be upended. Here's why:

Think of demand for copper as having two components: demand for industrial or productive uses and demand as...

SEC Litigation Releases: Week in Review - December 14th, 2012

(Dec 2012)

SEC Charges Massachusetts Company, CEO and Promoters With $9 Million Securities Fraud
December 14, 2012, (Litigation Release No. 22572)
According to the complaint (opens to PDF), BioChemics, Inc., its CEO, John Masiz, and two individuals paid to solicit investors, Craig Medoff and Gregory Kroning, "made false statements to investors about collaborations with major pharmaceutical companies and the status and results of drug trials of [BioChemic's] main product." Additionally, the SEC claims...

SEC Charges Tiger Asia Executive with Insider Trading

(Dec 2012)

Earlier this week, the Securities and Exchange Commission (SEC) charged two New York-based hedge fund managers with insider trading. Sung Kook "Bill" Hwang of Tiger Asia Management and Tiger Asia Partners admitted to using material non-public information to short sell shares of Bank of China Ltd. and China Construction Bank Corp resulting in nearly $17 million in unlawfully gained profits. Tiger Asia covered its short positions with private placement shares that were obtained at a discount....

CFTC Chief Economist Finds High Frequency Trading Harms Traditional Investors

(Dec 2012)

Andrei Kirilenko, chief economist at the Commodity Futures Trading Commission (CFTC), recently released a report that purports to show that the "high-speed trading firms that have come to dominate the nation's financial markets are taking significant profits from traditional investors" according to an article posted by Global Association of Risk Professionals (GARP) as well as the New York Times.

The report categorizes HFT firms as 'aggressive', 'mixed' or 'passive' depending upon the...

IBM Switches to Annual 401(k) Contributions

(Dec 2012)

The Associated Press recently posted a story concerning IBM's effort to cut costs by switching from regular contributions to employees' 401(k) accounts on each paycheck to a lump-sum contribution at the end of each year. This move, clearly in the best interest of shareholders, has real and significant implications to the 401(k) accounts of IBM employees. According to the article, only a minority of companies use this type of arrangement.

About 7 percent of employers offering 401(k)s make...

SEC Charges Morgan Keegan Directors with Failing to Oversee Asset Valuations

(Dec 2012)

The SEC has charged eight former Morgan Keegan directors with failing to provide accurate valuations for mortgage-backed securities during the subprime crisis of 2007. We wrote a paper in 2009 explaining the collapse of the RMK bond funds and how they relate to these very same securities.

The mutual funds at issue are 1) RMK High Income Fund, Inc.; 2) RMK Multi-Sector High Income Fund, Inc.; 3) RMK Strategic Income Fund, Inc.; 4) RMK Advantage Income Fund, Inc.; and 5) Morgan Keegan Select...

PowerShares to List Actively Managed Downside Hedged S&P ETF

(Dec 2012)

Late last week, Invesco PowerShares filed a form N-1A registration statement with the SEC to list an exchange traded fund (ETF) with exposure to the S&P 500 with downside exposure actively hedged through VIX futures contracts. The PowerShares S&P 500 Downside Hedged Portfolio (PHDG) seeks to "achieve positive total returns in rising or falling markets that are not directly correlated to broad equity or fixed income market returns" and has annual operating expenses of about 39 basis points....

SEC Litigation Releases: Week in Review - November 23rd, 2012

(Nov 2012)

Brian Stoker Found Not Liable
November 21, 2012, (Litigation Release No. 22541)
On July 31, 2012, the United States District Court for the Southern District of New York found Brian H. Stoker, former Citigroup Global Markets Inc. employee, "not liable for violations of the Federal securities laws related to the issuance of a $1 billion collateralized debt obligation (CDO) called Class V Funding III." The SEC did not appeal the verdict, and "the time for appeal has expired." The SEC filed its...

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