Investors with spare cash have cashed in on recent disruptions to the overnight repo market caused by a short-term spike in lending rates. "Where you were seeing rates at 2% for the last several months, all of the sudden you were getting overnight repos at 5%," says one trader.
Data from the European Securities and Markets Authority shows that alternative investment funds have a combined exposure to collateralized loan obligations of €17 billion. ESMA says the holdings are concentrated in just 20 funds, which between them hold some 50% of all leveraged loan and CLO exposures among EU-domiciled funds.
The recent attack on Saudi Arabian oil facilities has turned hedge funds bullish on the outlook for global oil supplies with Brent crude futures posting a 14% rise during trading on Monday. Traders believe the attacks, which have removed some five million barrels of oil from global supplies, amount to a severe supply shock.
Net hedge fund equity market exposures have hit their highest level since July last year, according to an analysis from Goldman Sachs. The analysts argue that the rising demand for equities is driven largely by rising hopes of a de-escalation in the US-China trade row.
The International Swaps and Derivatives Association has issued its final consultation on the proposed methodology for moving swaps contracts off Libor and onto those referencing alternative risk-free rates. ISDA will take input on the final parameters through Oct. 23.
Europe's investment managers are pushing hard for the European Securities and Markets Authority to recommend changes to the Markets in Financial Instruments Directive. Among the revisions they want to see to the regime is the introduction of a consolidated tape to make pricing information more readily available.
Sales of nontraded REITs increased 228% last month compared with August 2018, reaching almost $1.4 billion, according to Robert A. Stanger & Co. Stanger has upgraded its forecast for fundraising this year to $10 billion from $8 billion.
RREEF Property Trust has acquired a 222,805-square-foot shopping center north of Atlanta for $54.9 million, not including closing costs. The shopping center comprises five buildings and is located in Marietta, Ga.
The board of directors of Hines Global Income Trust has given the company's common stock a estimated per-share net asset value of $10.11 as of Aug. 31. The previous NAV per share was $10.10.
The Securities and Exchange Commission has declared that Black Creek Industrial REIT IV's $2 billion follow-on offering is effective. The publicly registered nontraded REIT's follow-on offering involves shares of Class I, Class T and Class W common stock totaling $1.5 billion and distribution reinvestment plan shares amounting to $500 million.
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