-- Investors tracking JPMorgan Chase & Co.’s emerging markets bond index have already positioned for India’s inclusion, with 3.6% of their assets allocated to the nation’s sovereign debt at end-May, according to Morgan Stanley.CDK Hackers Want Millions in Ransom to End Car Dealership OutageMost of the investors are active fund managers who don’t need to add exposure as India is added to the gauge on Friday, Min Dai, head of Asia macro strategy, wrote in a note.
India’s debt has become a favorite among emerging markets, with investors attracted to the nation’s solid finances and a stable currency. The country’s inclusion will come at the expense of Thailand, South Africa, Poland, the Czech Republic, Brazil and Columbia, according to Morgan Stanley.“Investors would need to either sell these markets’ bonds to fund India trades or use any new inflows to buy into India,” Dai wrote.
JPMorgan has proposed two possible steps to rebalance the index in its latest consultation, Morgan Stanley said. One suggestion is to cap Asia at 40%, which would give more weight to Latin America. The second measure would reduce the weight of major economies, effectively lowering China’s weight from 10% to 6%, it added. -- A Hong Kong court has given Chinese developer Kaisa Group Holdings Ltd.
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