Bespoke private placements will be in scope for JPMorgan EM index inclusion, bank says
JPM•JPMorgan said bespoke private placements will be eligible for its emerging market debt indexes from the end of October, subject to enhanced screening that typically lasts two months. The bank said several placements issued this year are likely to be added.
1. New eligibility rules
Bespoke private placements will be eligible for inclusion in JPMorgan’s emerging market debt indexes from the end of October. The bank said they will be subject to enhanced screening, typically lasting two months, assessing liquidity and tradeability based on factors including bond size, the number of dealer banks and bid-offer spreads.
2. Potential additions
JPMorgan said placements likely to be added include bonds issued by Angolan state oil company Sonangol, Azerbaijan’s state oil company Socar, and the governments of Gabon and Cameroon, as well as multiple corporate bonds issued in Nigeria and India. Taps of existing bonds conducted through private placements will typically be evaluated without the enhanced two-month liquidity review.
