Market Chatter: J.P. Morgan to Add Philippines to Emerging Market Index
J.P. Morgan plans to add the Philippines to its local currency emerging market debt index effective Jan. 29, 2027, Reuters reported Wednesday.As part of the inclusion, Philippine peso-denominated government bonds will enter the GBI-EM index series, according to the report. The weight of the bonds is anticipated to reach 1.78% once the phase-in is complete. Nine government bonds totaling $49 billion from the Philippines may be added, according to the report.The move is part of an index adjustment that will reduce country caps, or the maximum share a country can have in the diversified index, to 9% from 10% previously, the report said.The weight held by China, India, Mexico, Malaysia, and Indonesia will be lowered under this limit, Reuters said.J.P. Morgan is also adding Saudi Arabia to the index, with eight Saudi riyal-denominated sovereign sukuk entering the series and reaching a weight of 2.52% once phased in.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)