Investment Company Association: seabet online casino have withstood the test of the new coronavirus crisis
Category: Industry News Release Time: 2020-03-25 Number of Viewers:0 Share
Facing the financial market with increased volatility due to the new pneumonia，Can exchange-traded funds (seabet online casino) withstand the adverse effects of the market？ The situation is，Despite the sharp fluctuations in stock prices，The bid-ask spread continues to widen in the stock and bond markets，But ETF trading has always been very orderly，and helped with price discovery in early March，Refers to the process in which the market price reaches the equilibrium price after dynamic adjustment of information)。Also，The net subscription and net redemption sizes of seabet online casino vary by asset class，But it has always maintained a moderate level。
seabet online casino trading has always been in order
ETF provides investors with a mechanism to quickly and effectively transfer risks and hedge risks。Under normal market conditions，U.S. dollar-denominated ETF trading volume typically accounts for 25% to 30% of daily U.S. stock market trading volume。But during a crisis，We are seeing investors turning to seabet online casino。This is exactly what is happening right now: in the first two weeks of March，The daily trading volume of seabet online casino has always exceeded 30% of the total trading amount，Some days it’s even close to 40% (Figure 1)。
Figure 1: In times of crisis，Investors use seabet online casino to quickly and effectively transfer risks and hedge risks
seabet online casino aid in price discovery
ETF trading can help market participants faster、More accurately determine market-clearing prices for underlying stocks and bonds。For example，March 9th and March 12th，Before the U.S. Stock Exchange opens，S&P 500 futures down 5%，reached "circuit breaker"，US stock index futures trading suspended as a result。In these two days，Several seabet online casino tracking the S&P 500 continue to trade before the market opens，Its subsequent price changes (reflecting the changing views of market participants) closely correlate with the change in value of the S&P 500 at the open。
(Editor’s note: Click here to check the real-time pre-market/post-market prices of U.S. stock seabet online casino)
seabet online casino net subscriptions and net redemptions remain at moderate levels
Estimated，In the field of U.S. stock seabet online casino，There was a net inflow of funds (net subscription) on 8 of the first 10 trading days of this month，A total of 26 billion US dollars (Figure 2)。The vast majority of U.S. stock seabet online casino use physical trading，Use a basket of securities to subscribe or redeem，Instead of using cash。Therefore，These inflows require market participants to purchase shares，To create an ETF portfolio，Thus supporting the basic market。
Figure 2: U.S. equity seabet online casino inflows in the first two weeks of March
Estimated，From March 2nd to March 13th，Three major categories of bond seabet online casino (government bond seabet online casino、Investment-grade corporate bond seabet online casino and high-yield bond seabet online casino) net inflows of approximately US billion (Figure 3)。This may reflect a significant widening in credit spreads，Investors pay more attention to the quality of securities。Government bond ETF inflows ( billion) exceeded investment-grade corporate bond ETF outflows ( billion) and high-yield bond ETF outflows (.5 billion) combined。However，Transfers from investment-grade credit exposures are modest，As of the end of January，About billion in outflows from investment-grade corporate bond seabet online casino，Only 1% of the total assets of these funds.7%。
Figure 3: Within the first two weeks of March，Inflows into government bond seabet online casino have matched outflows from investment-grade corporate bond seabet online casino
During the first two weeks of March，High-yield bond seabet online casino have seen modest outflows，Only .5 billion (2% of assets in January.2%）。In fact，The main market activities of high-yield bond ETF include subscription and redemption， Both activities are directly related to high yield bonds。From March 2nd to March 13th，In the high-yield bond space，Subscriptions and redemptions related to its seabet online casino account for only a small portion of daily trading activity in this asset class (Figure 4)。Even on March 3rd，High-yield bond ETF market trading volume reaches .8 billion，The total USD transaction volume involved in these subscriptions and redemptions is less than 10% of the total high-yield bond transaction volume。
Figure 4: Primary market trading of high-yield bond seabet online casino represents only a small portion of high-yield bond trading
Overall，Last two weeks，seabet online casino acts as a safety valve in the stock and bond markets，Allows investors to gain or remove exposure to different asset classes。seabet online casino did not experience large-scale redemptions，It also did not produce any chain reaction in the basic market。
We often hear people say that seabet online casino are not truly tested。But when the new type of pneumonia is spreading，ETF remains healthy and robust so far。
Source: Sina Finance
