Gold has experienced its strongest rally in more than two years, and data show many factors supporting bullish positions. A note of caution is that potentially weak demand in India, the second-largest buyer of gold, could emerge as the rupee has declined and the price of gold is rising locally.
AIMA, GPP and Edgefolio have released a report that outlines six areas of focus as emerging hedge fund managers expand their assets under management, such as finding a wider range of capital investment sources as AUM exceeds $100 million. "This road map for the aspiring billion-dollar fund manager ... reveals the importance of effective marketing, aligning your business with your investors and maintaining efficient working capital levels," AIMA CEO Jack Inglis said.
Societe Generale analysts said relative-value trades that harness European credit default swaps on high-yield debt are likely to see advantages from spread compression as well as a positive yield differential between investment-grade and junk-rated credit. High-yield names in Europe tend to have "artificially-inflated debt structure created to finance a leveraged buy out," while junk-rated credit in the US tends to involve "high leverage, low earnings and genuine refinancing issues," the analysts wrote in a research note.
Returns on commodity investments for banks and hedge funds picked up in Q3 as reflected in overall improvements in their fixed-income sectors. The results confirm a turnaround from a dismal 2017, with oil and natural gas among the bright spots.
The Securities and Exchange Commission has voted unanimously to deny requests from the New York Stock Exchange and Nasdaq to increase fees they charge financial firms for market data. The SEC said the exchanges failed to justify the need for an increase.
Commodity Futures Trading Commission Chairman J. Christopher Giancarlo said the US is ready to retaliate if EU regulators force US counterparties to violate US rules to comply with EU regulations. If that situation arises, the US will respond with "a range of readily available steps to protect US markets and market participants," he said.
Cottonwood Residential has sold a multifamily portfolio of 12 properties to an Ares Management-led real estate fund for about $440 million. The properties sold by the private REIT are in Tennessee, Texas, North Carolina, South Carolina and Georgia.
Hines Global REIT has announced plans to sell the Campus at Playa Vista office complex in Los Angeles for about $335 million in a deal expected to close by November. Meanwhile, Hines Global Income Trust has acquired Fresh Park Venlo, an industrial business park in the Netherlands, for about $136.3 million.
SmartStop Asset Management affiliate Strategic 1031 Properties has fully subscribed its $59.2 million student housing offering. Power 5 Conference Student Housing I DST includes student housing properties near the University of South Carolina and the University of Michigan.
New IRS guidelines overcome a potential obstacle for issuers of variable annuity and life insurance contracts that want to invest in "uniform mortgage-backed securities." The IRS arranged to have the Federal Housing Finance Agency publish a "deemed-issuance ratio" that insurers can use to see how UMBS purchases could affect account diversification.
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