Bonds
JPMorgan Drops Proposal to Cut China’s Share in Key Emerging-Market Bond Index
- Bank floated revised methodology in preliminary consultation
- Saudi Arabia, Philippines eyeing potential inclusion to index
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JPMorgan Chase & Co. has dropped a proposal to change the way it calculates its flagship emerging-market bond index that would have reduced China’s share by almost half.
The bank is seeking feedback from clients on potential amendments to its GBI-EM index, the local-currency developing nation debt benchmark tracked by hundreds of billions of dollars. Under one radical option initially floated in its annual consultation process, China’s share in the gauge would have dropped to 6% from 10%.