How resilient are REITs to a pandemic? The COVID-19 effect

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Omokolade Akinsomi
Keyword(s):  
The United States ◽  
Asia Pacific ◽  
Content Type ◽  
Flight To Quality ◽  
The Us ◽  
Asset Portfolio ◽  
Reduce Risk ◽  
The Biggest Loser ◽  
The Impact ◽  
And Storage

PurposeReal estate investment trusts (REITs) are historically considered as attractive assets to investors particularly as the underlying assets are properties which are income-producing. REITs also distribute substantial amount of profits as dividends to shareholders. Stephen and Simon (2005) find that REITs in a mixed asset portfolio of stocks and bonds enhance returns and reduce risk. This paper examines the role a pandemic (COVID-19) plays in the performance of global REITs index and REIT sectors.Design/methodology/approachTo examine the effects of COVID-19 on REITs, the year-to-date (YTD) returns of global returns index and REITs sectors in the United States are observed and a comparative analysis is employed from January 2020 to May 2020.FindingsBased on a three-month return ending 22 May 2020, FTSE EPRA NAREIT index is the biggest loser at −31.83% whilst the FTSE EPRA Asia–Pacific index has the lowest loss at −23.20%. The author examines YTD returns which show disparities on the effect of COVID-19 on REIT sectors. The US market is examined; most REIT sectors suffered big losses as at April 2020; the analysis reveals YTD returns for the top three REIT sector losers are lodging/resort REITs (−45.81%), retail REITs (−41.16%) and office REITs (−22.63%). Data centre REITs are the only sector REITs with positive returns at 17.66%.Practical implicationsMost sector REITs during the pandemic have lost considerable value based on YTD returns as at May 2020. Flight to quality is expected during this uncertain period to REITs such as data REITs, grocery-anchored REITs and storage REITs. These REITs are not as adversely affected by COVID-19 in comparison to other REITs.Originality/valueThis paper identified the impact of COVID-19 on the performance of global REITs and US sector REITs during the periods from January 2020 to May 2020.

Hague Securities Convention goes into effect in the United States

2017 ◽  
Vol 18 (4) ◽  
pp. 72-77
Author(s):  
Bryan L. Barreras ◽  
Barbara M. Goodstein ◽  
Kevin C. McDonald
Keyword(s):  
The United States ◽  
Choice Of Law ◽  
Content Type ◽  
Commercial Code ◽  
The Us ◽  
Secured Transactions ◽  
The Hague ◽  
Market Practice ◽  
The Law ◽  
The Impact

Purpose To explain the Hague Securities Convention in the context of secured financing transactions in the US and to discuss the implications of the Convention on new and existing transactions, as well as on market practice going forward. Design/methodology/approach This article provides a broad overview of the Hague Securities Convention and the impact of the Convention’s choice of law rules on secured financing transactions in the US involving intermediated securities, including how this deviates from previously applicable laws (such as the Uniform Commercial Code), and provides practical considerations with respect to secured financing transactions. Findings While in most circumstances the Convention provides for the same choice of law as previously applicable laws, there are certain scenarios where the Convention will produce a different result. Market practice with respect to perfecting security interests will likely change to take account of the Convention and to provide the parties with certainty regarding the law applicable to secured transactions. Practical implications The Convention calls for increased diligence with respect to the law governing the account agreement between the debtor and the securities intermediary and whether the securities intermediary has a qualifying office in that jurisdiction. Originality/value Practical guidance from experienced finance lawyers.

US and EU agencies may push against Gulf airlines

2015 ◽  
Keyword(s):  
United States ◽  
Airline Industry ◽  
The United States ◽  
Air Transport ◽  
Asia Pacific ◽  
Content Type ◽  
The Us ◽  
The World ◽  
Us Government ◽  
International Airline

Subject Prospects for government intervention in the airline industry. Significance The leading Gulf airlines -- Emirates, Qatar and Etihad -- have risen rapidly over the last decade to become major players in the world air transport business. This has been at the expense of long-haul carriers in the United States, Europe and Asia-Pacific. US and European airlines are demanding action that could threaten liberalisation of the international airline industry. Impacts Neither the US government nor EU authorities are likely to unravel the network of international air transport agreements. Yet both Democratic and Republican politicians will be sensitive to demands from core constituencies. Further airline industry liberalisation and growth of Gulf based airlines may therefore be delayed.

Monetary policy shock and industrial production: industry-level evidence from the US

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nazneen Ahmad ◽  
Sandeep Kumar Rangaraju
Keyword(s):  
Monetary Policy ◽  
Vector Autoregression ◽  
The United States ◽  
Manufacturing Industries ◽  
Large Set ◽  
Structural Shocks ◽  
Content Type ◽  
The Us ◽  
Monetary Policy Shock ◽  
The Impact

PurposeThis paper investigates the impact of a monetary policy shock on the production of a sample of 312 industries in manufacturing, mining and utilities in the United States using a factor-augmented vector autoregression (FAVAR) model.Design/methodology/approachThe authors use a FAVAR model that builds on Bernanke et al. (2005) and Boivin et al. (2009). The main assumption in this model is that the dynamics of a large set of macro variables are captured by some observed and unobserved common factors. The unobserved factors are extracted from a large set of macroeconomic data. The key advantage of using this model is that it allows extracting the impulse responses of a wide range of macroeconomic variables to structural shocks in the federal funds rate.FindingsThe results indicate that industries exhibit differential responses to an unanticipated monetary policy tightening. In general, manufacturing industries appear to be more sensitive compared to mining, and utility industries and durable manufacturing industries are found to be more sensitive than those within nondurable and other manufacturing industries to a monetary policy shock. While all industries respond to the policy shock, most of the responses are reversed between 12 and 22 months.Research limitations/implicationsThe implication of our results is that monetary policy can be used to impact most US industries for four years and beyond. The existence of disparate responses across industries underscores the difficulty of implementing a monetary policy that will generate the same impact across industries. As the effects of the policy are distinct, policymakers may want to attend to the unique impacts and implement industry-specific policy.Practical implicationsThe study is important in the context of the current challenges in the US economy caused by the spread of coronavirus. For example, to tackle the current pandemic, the researchers are trying to come up with cures for COVID-19. A considerable response of the chemical industry that provides materials to pharmaceutical and medicine manufacturing to the monetary policy shock implies that an expansionary monetary policy may facilitate an invention and adequate supply of the cure later on. The same policy may not effectively stimulate production in apparel or leather product industries that are being hard hit by the pandemic.Originality/valueThe study contributes to the literature in broadly two aspects. First, to the best of our knowledge, this is the first paper that investigates the impact of a monetary policy shock on a sample of 312 industries in manufacturing, mining and utilities in the US. Second, to identify structural shocks and investigate the effects of monetary policy shocks on economic activity, the authors diverge from the literature's traditional approach, i.e. the vector autoregression (VAR) method and use a FAVAR method. The FAVAR provides a comprehensive description of the impact of a monetary policy innovation on different industries.

China agreement will not help US manufacturers

2019 ◽  
Keyword(s):  
United States ◽  
The United States ◽  
Trade Negotiations ◽  
Upper Midwest ◽  
Donald Trump ◽  
Content Type ◽  
China Trade ◽  
The Us ◽  
The Impact ◽  
Trade Wars

Subject The impact of the US-China trade wars on US manufacturers. Significance The United States and China reached a tentative agreement in trade negotiations on October 11 that President Donald Trump described as "a substantial phase one deal". The deal, which is yet to be finalised, centres on China's agreement to purchase some 40-50 billion dollars' worth of additional US agricultural goods annually, and Trump's agreement to suspend a planned increase in tariffs on 250 billion dollars' worth of Chinese goods, from 25% to 30%, that was due to take effect tomorrow. However, existing tariffs on both sides remain in place. Impacts A manufacturing recession could lead to greater upper Midwest voters’ discontent. Midwestern voter discontent could help a Democrat win the presidency in 2020, and a populist win the party’s nomination. US-based manufacturers could benefit from new contracts as supply lines are revised, but costs would rise. A second Trump tax cut in 2020 could temporarily help US-based firms avoid competitiveness gaps.

Prospects for defence in the fourth quarter

2015 ◽  
Keyword(s):  
North Africa ◽  
Oil Prices ◽  
The United States ◽  
Fourth Quarter ◽  
Asia Pacific ◽  
Arms Sales ◽  
Content Type ◽  
Industrial Base ◽  
Defence Budget ◽  
The Us

Subject Prospects for defence in the fourth quarter. Significance The United States will remain the dominant arms producer in the fourth quarter. With the shape of the next defence budget broadly known, attention has shifted to the future of the US defence industrial base and the prospects of further rationalisation. Russia will continue to push global arms sales, particularly in the Middle East and North Africa and Asia Pacific regions, given low oil prices that are hurting Moscow's finances.

Oil sanctions will not bring rapid change in Venezuela

2019 ◽  
Keyword(s):  
United States ◽  
Rapid Change ◽  
The United States ◽  
Technical Aspects ◽  
Social Crisis ◽  
Content Type ◽  
Oil Markets ◽  
The Us ◽  
Oil Sector ◽  
The Impact

Significance President Nicolas Maduro’s beleaguered government will seek to sidestep sanctions on the Venezuelan oil sector announced by the United States on January 28. Some technical aspects of the sanctions remain unclear, but the move will most immediately impact Caracas’s access to dollars and bilateral energy supplies. Impacts The US squeeze on the Venezuelan economy risks exacerbating social crisis and migratory outflows. Russia and China will continue to align with Maduro. The impact on international oil markets will be modest given already collapsed Venezuelan output.

Venezuela talks continue but amid steep obstacles

2019 ◽  
Keyword(s):  
United States ◽  
Latin American ◽  
Military Intervention ◽  
The United States ◽  
Humanitarian Crisis ◽  
Content Type ◽  
The Us ◽  
The Impact ◽  
Latin American And Caribbean

Significance While there is moderate optimism among European, Latin American and Caribbean countries about a negotiated solution to Venezuela’s crisis, the United States remains sceptical. The US position strengthens more hawkish but domestically unpopular elements in the opposition that support a military intervention to remove President Nicolas Maduro. Impacts Progressing dialogue will put pressure on Guaido, whose appeasement of both pro- and anti-negotiation factions is unsustainable. Growing concern as to the impact of US sanctions on the humanitarian situation will intensify efforts to resolve the impasse. Amid a worsening humanitarian crisis, it will become morally and politically difficult to hold out for Maduro’s departure.

The efficacy of gender-based federal procurement policies in the United States

2019 ◽  
Vol 11 (1) ◽  
pp. 6-37 ◽  
Author(s):  
Barbara Orser ◽  
Allan Riding ◽  
Julie Weeks
Keyword(s):  
Secondary Analysis ◽  
The United States ◽  
Content Type ◽  
The Us ◽  
Us Government ◽  
Gender Based ◽  
Procurement Contracts ◽  
The Impact ◽  
Federal Procurement ◽  
Theoretical Paradigms

Purpose Because procurement policies are one of the means of redressing discrimination and economic exclusion, the US Government has targeted 23 per cent of its annual half-trillion dollar spend to small- and medium-sized enterprises (SMEs) and 5 per cent of its spend to women-owned businesses. Design/methodology/approach The research framework is informed by two theoretical paradigms, feminist empiricism and entrepreneurial feminism, and uses a secondary analysis of survey data of active federal contractors. Findings Empirical findings inform the extent to which certifications are associated with bid frequency and bid success. The results indicate that none of the various certifications increase either bid frequency or bid success. The findings are consistent with entrepreneurial feminism and call for federal accountability in contracting with women-owned supplier firms. Research limitations/implications The findings are consistent with entrepreneurial feminism and call for federal accountability in contracting with women-owned supplier firms. Practical implications Recommendations include the need to review the impact of consolidated tenders on designated (as certified) SME vendors and to train procurement personnel about the economic contributions of women-owned businesses. Originality/value This research studies the efficacy of various certifications, with particular reference to that of women-owned, on the frequency with which SMEs bid on, and succeed in obtaining, US federal procurement contracts.

scholarly journals THE IMPACT OF US POLICY ON ECONOMIC INTEGRATION IN THE ASIA PACIFIC ON THE THRESHOLD OF THE THIRD DECADE OF THE 21ST CENTURY

2020 ◽  
pp. 71-87
Author(s):  
K. O. Chudinova
Keyword(s):  
United States ◽  
Regional Integration ◽  
The United States ◽  
Chinese Economy ◽  
Asia Pacific ◽  
Production Networks ◽  
The Us ◽  
Economic Partnership ◽  
Regional Comprehensive Economic Partnership ◽  
The Impact

The Trump administration’s economic policy has led to increased uncertainty, disruption to global value chains, decline in trade in the Asia-Pacific region. Amid the US withdrawal from the Trans-Pacific Partnership, revising NAFTA, imposing tariffs, decoupling from the Chinese economy, Japan, China and other economies in the Asia Pacific are trying to develop new mechanisms to increase stability in the region and protect their production networks. One way to improve the situation is to conclude intra-regional and inter-regional free trade agreements, the number of which is increasing. At present, there are two competing mega-FTA projects of China and Japan – the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The United States is with moderate success developing its own format of a free and open Indo-Pacific, which is partly a counterbalance to the RCEP. The US also concludes bilateral agreements, such as first phases of trade deals with Japan and China. However, winning the negotiating table, the United States can seriously lose in competitiveness, as regional integration develops further and often without the participation of America.

The Impact of Monetary and Fiscal Policies on the Stock Market in the United States (U.S); Evidence from Linear ARDL Framework

2020 ◽  
Vol 11 (1) ◽  
pp. 132-132
Author(s):  
Aref Emamian
Keyword(s):  
United States ◽  
Stock Market ◽  
The United States ◽  
Real Effective Exchange Rate ◽  
Annual Data ◽  
Fiscal Policies ◽  
Long Run ◽  
The Us ◽  
Short Run ◽  
The Impact

This study examines the impact of monetary and fiscal policies on the stock market in the United States (US), were used. By employing the method of Autoregressive Distributed Lags (ARDL) developed by Pesaran et al. (2001). Annual data from the Federal Reserve, World Bank, and International Monetary Fund, from 1986 to 2017 pertaining to the American economy, the results show that both policies play a significant role in the stock market. We find a significant positive effect of real Gross Domestic Product and the interest rate on the US stock market in the long run and significant negative relationship effect of Consumer Price Index (CPI) and broad money on the US stock market both in the short run and long run. On the other hand, this study only could support the significant positive impact of tax revenue and significant negative impact of real effective exchange rate on the US stock market in the short run while in the long run are insignificant. Keywords: ARDL, monetary policy, fiscal policy, stock market, United States

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