Hard-hit online lender CAN Capital makes executive changes

The biggest online lender to small businesses in the US has pulled down the shutters and put its top managers on a leave of absence, in the latest blow to an industry grappling with mounting fears over credit quality. Atlanta-based CAN Capital said on Tuesday that it had replaced a trio of senior executives, after […]

Continue Reading


BoE stress tests: all you need to know

The Bank of England has released the results of its latest round of its annual banking stress tests and its semi-annual financial stability report this morning. Used to measure the resilience of a bank’s balance sheet in adverse scenarios, the stress tests measured the impact of a severe slowdown in Chinese growth, a global recession […]

Continue Reading


Zoopla wins back customers from online property rival

Zoopla chief executive Alex Chesterman has branded rival OnTheMarket “a failed experiment”, and said that his property site was winning back customers at a record rate. OnTheMarket was set up last year, aiming to compete with Zoopla and Rightmove, the UK’s two biggest property portals. It allowed estate agents to list their properties more cheaply […]

Continue Reading


Asia markets tentative ahead of Opec meeting

Wednesday 2.30am GMT Overview Markets across Asia were treading cautiously on Wednesday, following mild overnight gains for Wall Street, a weakening of the US dollar and as investors turned their attention to a meeting between Opec members later today. What to watch Oil prices are in focus ahead of Wednesday’s Opec meeting in Vienna. The […]

Continue Reading

Banks, Financial

RBS emerges as biggest failure in tough UK bank stress tests

Royal Bank of Scotland has emerged as the biggest failure in the UK’s annual stress tests, forcing the state-controlled lender to present regulators with a new plan to bolster its capital position by at least £2bn. Barclays and Standard Chartered also failed to meet some of their minimum hurdles in the toughest stress scenario ever […]

Continue Reading

Categorized | Capital Markets

US equity funds suffer more outflows

Posted on April 22, 2016


US equity funds continue to bleed money as investors fearful of weak company earnings and wavering oil prices remain unconvinced by the market’s strong rally over the past week.

Globally, equities lost $7.3bn for the week ending Wednesday, with the US responsible for $4.2bn of outflows, taking total outflows in the US to just shy of $50bn this year. Retail investors remain especially cautious, clocking up their 24th consecutive week of outflows, according to data from EPFR.

    Equity markets continue to rally, with the S&P 500 indicative of Wall Street’s charge, rising a little less than 1 per cent for the week ending Wednesday, to 2,102.40. The index sits close to fresh highs, with some analysts believing the market has the legs to set a new record.

    But despite efforts from central bankers globally to keep markets calm — with the US Federal Reserve dampening expectations of a further rate rise in the near future and Mario Draghi, president of the European Central Bank, maintaining aggressive policy on Thursday — investors still see much to be concerned about.

    The beginning of the US earnings season is proving underwhelming, even starting from low expectations.

    Oil prices have survived potential collapse after a meeting last weekend in Doha failed to produce agreement on a production freeze. But nerves remain with fears that if oil falters equity will not be far behind.

    “Oil remains of focus following the meeting in Doha, where major oil-producing countries failed to reach a production agreement,” said Terry Sandven, chief equity strategist at US Bank Wealth Management, in a research note. “We continue to believe that oil will remain a source of tension for the equity market until the price of crude oil becomes stabilised as a result of a greater balance between production and consumption levels.”

    Commodity sector funds continued their strong 2016 performance with fresh inflows, while energy sector funds suffered their steepest outflows of the year. Investors are braced for upcoming earnings from Exxon and BP next week after the collapse of US coal group Peabody.

    In Europe, equity redemptions ahead of Thursday’s ECB meeting pushed the year-to-date total to more than $20bn, according to EPFR data. Investors also remain concerned about a recovery in the eurozone and the health of the Italian banking system. Japanese equities also suffered, with $2.5bn heading out the door.

    It has meant a continuation of support for bond funds, which saw broad inflows across sectors and geographies. Emerging market bond funds have taken in more than $1bn in five of the past seven weeks. US inflows were dominated by long-term corporate funds, while long-term government bond funds saw outflows.

    Flows separately tracked by Lipper reported inflows of $410m to high-yield bond funds over the past week, while loan funds saw outflows of $93m.