From The Economic Times · Reuters · · 1m 20s
JP Morgan Adds Philippines and Saudi Arabia to EM Bond Index
JP Morgan will add Saudi Arabia and the Philippines to its key emerging market bond index over 10 months starting January 29, 2027.
In brief
JP Morgan will add Saudi Arabia and the Philippines to its key emerging market bond index over 10 months starting January 29, 2027. JP Morgan will add Saudi Arabia and the Philippines to its key emerging market bond index over 10 months starting January 29, 2027. Originally reported by The Economic Times.
JP Morgan Update
JP Morgan said Saudi Arabia and the Philippines will be added to its key emerging market bond index over a 10-month period starting January 29, 2027.
Index Inclusion Details
The inclusion will bring Saudi riyal-denominated sovereign sukuk and Philippine peso-denominated government bonds into the US investment bank's widely tracked GBI-EM index series.
Gradual Weight Introduction
Saudi Arabia's weight will reach 2.71% once fully phased in, slightly higher than originally flagged, and the Philippines' weight reaching 1.64%, marginally lower than indicated.
Index Additions
The index will add nine Philippine bonds with a total notional value of $50 billion plus eight Saudi sukuk instruments worth $79 billion.
Country Cap Adjustment
JP Morgan's update lowers the 'Country Cap' - the maximum weight any single country can hold in the diversified index - to 9% from 10%.
Market Impact
Major markets including China, India, Mexico, Malaysia, and Indonesia will have their weight reduced to the new limit.
The takeaway
JP Morgan will add Saudi Arabia and the Philippines to its key emerging market bond index over 10 months starting January 29, 2027.
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