MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Monday, July 29, 2013 SSgA Gave Main Street a Break on Muni ETFs The recent State Street Bank & Trust [profile] decision to ask institutional investors to bear the cost of fees when covering underlying securities, forced dealers to bear their own transaction costs, Barrons' Brendan Conway writes. The State Street redemptions on municipal bond ETFs highlighted an issue: dealers and shareholders are often in conflict. Yet, Conway says there is a potential problem. He worries that shutting down the cash-exchange option could result in fewer dealers, which could lead ETF shares to trade at prices that aren't close enough to the value of its underlying securities. Conway writes that the State Street muni-ETF redemption halt likely contributed to ETFs being traded at discounts and to smaller premiums, and most recently, big discounts. To read more, click here. Printed from: MFWire.com/story.asp?s=45158 Copyright 2013, InvestmentWires, Inc. All Rights Reserved |