UN works on country default rules

The United Nations decided to work on an framework setting rules for the default of countries. The UN framework will especially deal with the restructuring of sovereign debt. This is a reaction on the default of Argentina.

SEC preparing new fund oversight rules

The US Security and Exchange Commission prepares, according to the Wall Street Journal, new rules to boost oversight of mutual funds and hedge funds. This is part of a program investigating whether the asset management industry increases risks in the financial system.

Investor confidence rises in August

The State Street Investor Confidence Index rises in August by 7.2 points to 122.8 points. This shows the rising optimism of institutional investors.

ECB going to start ABS purchase

The ECB confirmed to begin the purchase of ABS in October. This is done to facilitate credit flows into the euro-zone economy. Furthermore, interest rates were decreased.

Asian infrastructure investments not attractive enough

According to an S&P report, infrastructure investments do not meet the expectations of investors regarding their risk-return profile. Political and economic risks as well as regulations and a weak credit culture are deterring investors.

Insurers may invest in German infrastructure

German insurance companies said that they may back a government call to invest about 7 billion Euro to cover the financing of German infrastructure investments in bridges and roads.

UBS hedge fund quits REIT

According to an regulatory statement, the UBS hedge fund O’Connor LLC was selling nearly all of it’s american real estate investment trusts in the last quarter.

Soy bear run extends

The improving conditions for soy bean growing and the upcoming record harvest in the US, worlds largest producer, made money managers go short in soy beans for five weeks in a row. This is the longest sequence since 2006.

German economy slows down in Q2

Germany’s economic growth fell in the second quarter of this year by 0.2% compared to the previous quarter. Experts say that this is the effect of geopolitical effects in the short term but also upcoming structural problems in the long term.

Hedge fund to make 40% of asset management revenues

According to a study from McKinsey & Co published last week, hedge funds, private equity firms and other alternative investments will receive up to 40% of the revenues made in the asset management industry by 2020.

Yields and risks of infrastructure investments

Infrastructure investments are popular due to many advantages as attractive returns, security against inflation, reliable cash flows and low correlation with other asset classes but increasing interest rates are a risk for their returns.