Turkey Set for Boost After Russia Removed From Bond Indexes
- Turkey’s weight increased most in emerging market benchmarks
- Rebalancing drives inflows and may help lower borrowing costs
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Turkey is set to benefit after Russia was removed from emerging-market bond indexes last week following U.S. and European Union sanctions that limited trading liquidity.
The nation’s weighting in both JPMorgan Chase & Co.’s flagship index and Bloomberg’s benchmark jumped the most among remaining constituents to about 4% on March 31. Turkey now ranks seventh in both gauges, with newly-issued sovereign debt among the biggest additions.