Latest news with #GBI-EMGlobalDiversified
Mint
4 days ago
- Business
- Mint
JPMorgan mulls cutting China, India share in EM Bond index
JPMorgan Chase & Co. is considering cutting the weight of the largest bond issuers in its flagship emerging-market index — including China and India — as it seeks to reflect a broader range of developing-nation debt. The Wall Street bank has been soliciting feedback from clients on amendments to its GBI-EM Global Diversified index, the benchmark for local-currency developing-nation debt that's tracked by more than $200 billion of funds, documents seen by Bloomberg show. One of the proposals envisages lowering a cap on individual countries from 10% to 8.5%, a move that could increase the average yield of the benchmark, as nations with higher borrowing costs gain a bigger presence, according to the documents. While a loftier yield implies greater risks, it also means higher potential returns. The amendments are preliminary proposals, the documents show, and are not guaranteed to be adopted. In a consultation last year, JPMorgan initially floated a methodology change which would have resulted in China's index share falling to 6%, only to later withdraw the proposal. A spokesperson for JPMorgan declined to comment when contacted by Bloomberg. JPMorgan's index is the main benchmark for developing-nation debt funds, and changes to its composition can affect global investment flows. Chinese bonds were phased into JPMorgan's indexes in 2020 while Indian debt was added last year. If the latest amendments are implemented, the weighting reductions would affect the largest bond sellers in emerging markets, including Indonesia, Mexico and Malaysia, as well as China and India, according to the documents. Brazil, South Africa, Poland and Colombia would be among the biggest beneficiaries, they show. The change would enhance index diversification, the JPMorgan documents said, citing the re-allocation of index weight to midsize and smaller market economies. In addition, index membership is being assessed for local-currency bonds from Saudi Arabia and Philippines, while Kazakhstan, Egypt, Nigeria and Argentina could be prospects for future inclusion. JPMorgan is also previewing a new index for local markets from so-called frontier economies, with $344 billion of debt across 521 bonds eligible, according to the documents. The new frontier gauge would cover 21 markets across 20 currencies.
Time of India
5 days ago
- Business
- Time of India
GBI-EM Global Diversified index: Why JPMorgan is thinking of cutting India, China share in EM Bond Index
The bank has been gathering client input regarding potential modifications to its GBI-EM Global Diversified index. (AI image) JPMorgan Chase & Co. is evaluating potential adjustments to its primary emerging-market index by reducing the allocation of major bond issuers, including China and India, aiming to encompass a wider spectrum of developing-nation debt. According to documents reviewed by Bloomberg, the American investment bank has been gathering client input regarding potential modifications to its GBI-EM Global Diversified index, the primary indicator for local-currency developing-nation debt, which currently guides investments exceeding $200 billion. The suggested changes include reducing the maximum country allocation from 10% to 8.5%. This adjustment could result in an increased average yield for the benchmark, as countries with higher interest rates would receive larger representation, as outlined in the documents. Whilst elevated yields typically indicate higher risks, they also present opportunities for increased returns. The documents indicate these modifications are initial suggestions and implementation isn't certain. Previously, during a consultation in the previous year, JPMorgan had suggested a methodology revision that would have decreased China's index representation to 6%, but subsequently withdrew this recommendation. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Most Successful Way of Intraday Trading is "Market Profile" TradeWise Learn More Undo Under the proposed changes, the weight reductions would impact major bond issuers in emerging markets, including Indonesia, Mexico, Malaysia, China and India, as indicated in the documents. The modifications would primarily benefit Brazil, South Africa, Poland and Colombia. JPMorgan's new initiative includes introducing a frontier local markets index, encompassing £344 billion worth of debt across 521 bonds, according to the documents. This new frontier measure would include 21 markets spanning 20 currencies. As the primary benchmark for developing-nation debt funds, modifications to JPMorgan's index composition can significantly influence global investment patterns. The index incorporated Chinese bonds in 2020, followed by Indian debt's inclusion the previous year. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
5 days ago
- Business
- Economic Times
JPMorgan considers cutting China, India share in EM Bond Index
JPMorgan Chase & Co. is considering cutting the weight of the largest bond issuers in its flagship emerging-market index — including China and India — as it seeks to reflect a broader range of developing-nation debt. ADVERTISEMENT The Wall Street bank has been soliciting feedback from clients on amendments to its GBI-EM Global Diversified index, the benchmark for local-currency developing-nation debt that's tracked by more than $200 billion of funds, documents seen by Bloomberg show. One of the proposals envisages lowering a cap on individual countries from 10% to 8.5%, a move that could increase the average yield of the benchmark as nations with higher borrowing costs gain a bigger presence, according to the documents. While a loftier yield implies greater risks, it also means higher potential returns. The amendments are preliminary proposals, the documents show, and are not guaranteed to be adopted. In a consultation last year, JPMorgan initially floated a methodology change which would have resulted in China's index share falling to 6%, only to later withdraw the the latest amendments are implemented, however, the weighting reductions would affect the largest bond sellers in emerging markets, including Indonesia, Mexico and Malaysia, as well as China and India, according to the documents. Brazil, South Africa, Poland and Colombia would be among the biggest beneficiaries, they is also previewing a new frontier local markets index, with $344 billion of debt across 521 bonds eligible, according to the documents. The new frontier gauge would cover 21 markets across 20 currencies. ADVERTISEMENT A spokesperson for JPMorgan declined to comment when contacted by index is the main benchmark for developing-nation debt funds and changes to its composition can affect global investment flows. Chinese bonds were phased into JPMorgan's indexes in 2020 while Indian debt was added last LP, the parent company of Bloomberg News, also offers index products for various asset classes through Bloomberg Index Services Ltd. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
5 days ago
- Business
- Time of India
JPMorgan considers cutting China, India share in EM Bond Index
JPMorgan Chase & Co. is considering cutting the weight of the largest bond issuers in its flagship emerging-market index — including China and India — as it seeks to reflect a broader range of developing-nation debt. The Wall Street bank has been soliciting feedback from clients on amendments to its GBI-EM Global Diversified index, the benchmark for local-currency developing-nation debt that's tracked by more than $200 billion of funds, documents seen by Bloomberg show. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cheras: SUV Sale, Click Here to See Prices Luxury SUV Deals | Search Ads Search Now Undo One of the proposals envisages lowering a cap on individual countries from 10% to 8.5%, a move that could increase the average yield of the benchmark as nations with higher borrowing costs gain a bigger presence, according to the documents. While a loftier yield implies greater risks, it also means higher potential returns. Bonds Corner Powered By JPMorgan considers cutting China, India share in EM Bond Index JPMorgan is considering lowering the country cap in its GBI-EM index from 10% to 8.5%, potentially reducing China and India's weight while boosting smaller emerging markets. The proposal aims to diversify exposure and enhance index yield. Sebi's bond central to deepen corporate bond market, improve price discovery: Vineet Agrawal ETMarkets Smart Talk: Fixed income still has a place in FY26 - 15–20% allocation ideal for most, 70% for seniors, says Aamar Deo Singh India's Rs 50 lakh crore bond market grows, but retail investors still sit on the sidelines: Experts Adani Enterprises' Rs 500-crore NCD issue oversubscribed 3x Browse all Bonds News with The amendments are preliminary proposals, the documents show, and are not guaranteed to be adopted. In a consultation last year, JPMorgan initially floated a methodology change which would have resulted in China's index share falling to 6%, only to later withdraw the proposal. If the latest amendments are implemented, however, the weighting reductions would affect the largest bond sellers in emerging markets, including Indonesia, Mexico and Malaysia, as well as China and India, according to the documents. Brazil, South Africa, Poland and Colombia would be among the biggest beneficiaries, they show. Live Events Frontier Gauge JPMorgan is also previewing a new frontier local markets index, with $344 billion of debt across 521 bonds eligible, according to the documents. The new frontier gauge would cover 21 markets across 20 currencies. A spokesperson for JPMorgan declined to comment when contacted by Bloomberg. JPMorgan's index is the main benchmark for developing-nation debt funds and changes to its composition can affect global investment flows . Chinese bonds were phased into JPMorgan's indexes in 2020 while Indian debt was added last year. Bloomberg LP, the parent company of Bloomberg News, also offers index products for various asset classes through Bloomberg Index Services Ltd.
Bloomberg
5 days ago
- Business
- Bloomberg
JPMorgan Considers Cutting China, India Share in EM Bond Index
JPMorgan Chase & Co. is considering cutting the weight of the largest bond issuers in its flagship emerging-market index — including China and India — as it seeks to reflect a broader range of developing-nation debt. The Wall Street bank has been soliciting feedback from clients on amendments to its GBI-EM Global Diversified index, the benchmark for local-currency developing-nation debt that's tracked by more than $200 billion of funds, documents seen by Bloomberg show.
