BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE:STT) today announced an expansion in coverage of State Street PriceStats Purchasing Power Parity (PPP) Indicators, which measure real exchange rates (RERs) for targeted economies with respect to the United States and, for select countries, Germany. The expansion in coverage adds seven new series to the existing eight, bringing the total number of PPP series to 15.
State Street PriceStats PPP Indicators use online prices to compute the relative cost of a basket of identical goods in each country versus the US and/or Germany and signal RER deviations from PPP or RER historical averages. Compared to other measures of PPP, the State Street PriceStats Indicators have the advantage of using a common basket of ~250 goods matched across countries including food, electronics and fuel. Additionally, the State Street PriceStats series are high-frequency (daily values) and updated on a monthly basis with only a 3-day publication lag.
“The expansion of the PriceStats PPP indicators offers investors a greater insight into the relative competitiveness of European Economies,” said William Kinlaw, head of State Street Associates, State Street’s academic affiliate. “New series for Germany against the UK and Japan broaden the scope of our understanding of Euro valuation against major trading partners, and the intra-Euro series of Germany against France and Spain allows us to track competitive trends within the Eurozone itself.”
“The consistent methodology we apply to our PPP indices will now allow us to more accurately capture price differentials across countries than traditional measures have previously offered,” says Alberto Cavallo, assistant professor of applied economics at MIT and Co-Founder of PriceStats. “Coupled with the high-frequency nature of these series and increasing breadth we offer, investors are able to better identify and react to currency mis-valuations across markets in a timely way.”
The State Street PriceStats indicators build on the capabilities of State Street’s academic think tank, State Street Associates (SSA), a division of State Street Global Markets. SSA bridges the worlds of financial theory and practice, develops proprietary investment indicators, differentiated analytics applications and tailored investment strategies for institutional investors around the world.
About State Street Corporation
State Street Corporation (NYSE: STT) is the world's leading provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $34.36 trillion in assets under custody and administration and $3.12 trillion* in assets under management as of December 31, 2019, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
*Assets under management as of December 31, 2019 includes approximately $45 billion of assets with respect to which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.