JPMorgan Chase set to remove Russian debt from its popularly used bond indices in a bid to exclude the country from the global financial system.
- The bank will remove Russian sovereign and corporate bonds from all of its fixed-income indices starting March 31 after similar announcements from index providers, including FTSE Russell, S&P Dow Jones Indices, and MSCI.
- Sanctions on Russia have made its debt illiquid and uninvestable and pushing most of its bonds close to default.
- The move excludes Russian bonds from JPMorgan’s “hard currency” corporate and sovereign indices and its index for debt in the emerging market.
- JPMorgan’s emerging market index tracks fixed-income asset classes and acts as an industry benchmark.
- Russian and Belarusian debt will be removed from its emerging market indices that follow environmental, social, and governance (ESG) criteria.
Russia accounts for 0.83% of the JPMorgan Emerging Markets Bond Index, tracking nearly $415 billion in assets.
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