JPMorgan says Russia remains part of its emerging debt indexes, new bonds excluded

LONDON (Reuters) – JPMorgan stated on Tuesday that Russian debt remained a part of its rising market bond indexes for now however that new debt issued by sanctioned Russian entities wouldn’t be included from March 1.

The U.S. financial institution, whose rising market indexes are extensively adopted, has been assessing the affect of Western sanctions on Russia and the nation’s inclusion within the native foreign money JPMorgan Authorities Bond Index-Rising Markets and its laborious foreign money Rising Market Bond Index.

As of Feb. 28 there have been no adjustments to the prevailing Russia bond compositions in these indexes, in addition to the CEMBI index.

Nevertheless it stated Russia and Belarus have been underneath evaluate for exclusion from the environmental, social and governance variations of its indexes from March 31.

Particular company and quasi-sovereign issuers, akin to VTB Financial institution and Russian state growth financial institution VEB, are additionally underneath evaluate for elimination from the indexes on March 31, JPMorgan stated.

Inclusion of Ukrainian native foreign money authorities bonds within the Authorities Bond Index-Rising Markets indexes, which was attributable to occur on March 31, would now be put in maintain “till additional evaluate as a result of ongoing market disruption”, the financial institution added in a observe despatched to purchasers.

(Reporting by Tommy Reggiori Wilkes)