Banking

Russia will be excluded from all JPMorgan fixed income indexes

Russia will be excluded from all of JPMorgan’s fixed income indexes on March 31, the bank said in a statement on Monday, joining rival index providers that had excluded Russian securities from their indexes after Moscow’s invasion of Ukraine.

JPMorgan (JPM.N) had placed Russia on index watch on March 1 after sanctions were imposed on the country.

The Wall Street bank runs the widely followed family of sovereign hard-currency indexes EMBI, as well as a corporate debt counterpart CEMBI. It also has the GBI-EM benchmark for local debt in emerging currencies and the JESG index governed by environmental, social and governance (ESG) factors.

Russia will be excluded from the EMBI indexes, including the investment grade and other credit bucket sub-indexes, the bank said on Monday.

Local-currency denominated Russian bonds will be excluded from the GBI-EM indices and accrued interest for such bonds will be set to zero and suspended as of March 7, it said.

Russia and Belarus will be excluded from the JESG EMBI, JESG GBI-EM, and JESG CEMBI indices, it added.

Global assets worth $842 billion are benchmarked against JPMorgan’s indexes, according to the bank. Russia has a weighting of 0.89% in the EMBIG Diversified index, and a 1.03% weighting in the ESG version of the index.

Russia’s weighting in key emerging market indexes took a sharp hit after sanctions were imposed in the wake of Moscow’s annexation of Crimea in 2014. The weightings subsequently recovered some ground, only to take another dive this year as tensions over Ukraine sharply escalated in recent weeks.

Index providers FTSE Russell and MSCI said last week they were taking similar steps as deepening sanctions and public pressure isolate Russia’s economy from Western investment and trading partners. read more

Reporting by Davide Barbuscia; Editing by Richard Pullin

Global Business Magazine

Recent Posts

UAE Unveils Landmark R&D Tax Incentive Framework to Boost Innovation Economy

New regime offers up to 50% tax relief, setting the stage for research-led growth and…

2 weeks ago

Dubai’s Bankers Assess Post-Conflict Reality as Economic Pressures Mount

Tourism slowdown, real estate stress, and financial volatility drive calls for policy intervention Nearly a…

2 weeks ago

Dubai Strengthens Supply Chain Resilience: Dubai Chambers, DP World & Dubai Customs Engage 100 Companies

In a strategic move to reinforce global trade resilience and enhance logistics efficiency, Dubai Chambers,…

2 weeks ago

Dubai Real Estate Sales Plunge Over 40% Amid Middle East Conflict, Investors Turn Cautious

Dubai’s once-booming real estate sector is witnessing a sharp slowdown, with property sales dropping by…

2 weeks ago

Dubai luxury property market brings developer sales of AED10.92 billion in March

Keturah analysis shows developer transaction volume climbed 42% YoY with a week of the month remaining…

2 weeks ago

ED Flags Indians Buying Dubai Property via Credit Cards: FEMA & RBI Rules Explained

In a significant regulatory development, the Enforcement Directorate (ED) has begun scrutinizing Indian residents who…

3 weeks ago