(Adds value and number of Russian bonds in indexes)
LONDON/NEW YORK, April 15 (Reuters) - U.S. sanctions announced on Thursday on newly-issued Russian government debt could see the bonds excluded from JPMorgan’s influential indexes, including the emerging market local-currency GBI-EM investment index, the bank said.
“Economic sanctions which impact the replicability of the JPMorgan fixed income indices will result in an Index Watch (observation period) followed by potential rebalance actions such as exclusion of the sanctioned bonds/issuers from the benchmark,” JPMorgan said.
Russia’s share in JPMorgan’s GBI-EM index, the main global benchmark for emerging market local currency bonds, now sits at 7.1% compared with 8.9% a year ago and the maximum possible 10% in 2014 before Russia was hit with Western sanctions for annexing part of Ukraine.
British 10-year index-linked bonds attracted record demand at a government auction on Wednesday, adding to signs of concern that inflation might rise faster than expected.
Investment Week is hosting its Global Emerging Markets Briefing at a pivotal time for investors as they start to position for the recovery from the Covid-19 pandemic, although risks remain.
During this interactive briefing, we will hear from a number of global emerging market managers about their response to the extraordinary events of the past year and their outlook for the rest of the year and beyond.
The managers will identify where they are seeing the biggest opportunities and risks at the moment in emerging markets and explain the role their strategies could play in client portfolios.
Attendees will also get the chance to network with peers, quiz our speakers, as well as benefit from CPD points
Investment Week is hosting its Alternatives Briefing at a pivotal time for investors as they start to position for the recovery from the Covid-19 pandemic, although risks remain.
During this interactive briefing, we will hear from a number of alternatives managers about their response to the extraordinary events of the past year and their outlook for the rest of the year and beyond.
The managers will identify where they are seeing the biggest opportunities and risks at the moment for their portfolios and explain the role their strategies could play in helping diversify client portfolios.
Attendees will also get the chance to network with peers, quiz our speakers, as well as benefit from CPD points.