Nigeria returns to J.P. Morgan bond index after 11-year absence

Nigeria has returned to a JP Morgan emerging-market bond index after its inclusion in the new GBI-EM Edge, marking its first return since 2015. Read More: https://punchng.com/nigeria-returns-to-jp-morgan-bond-index-after-11-years/

Nigeria has been included in J.P. Morgan’s new Government Bond Index–Emerging Markets Edge, marking its return to the bank’s benchmark after 11 years. Read More: https://punchng.com/nigeria-rejoins-jp-morgan-bond-index-after-11-years/

JPMorgan has announced the inclusion of selected Federal Government of Nigeria, FGN, bonds in its newly introduced Government Bond Index–Emerging Markets Edge (GBI-EM Edge). The Minister of Finance, Taiwo Oyedele, disclosed this in a statement on Monday. Oyedele said the move reflects improvements in Nigeria’s economic environment following reforms that have helped stabilise the naira, clear […] JP Morgan adds FGN bonds to emerging markets index

 J.P. Morgan has included Nigeria in its new emerging markets index, assigning a 7.4 percent weighting to the West African nation.   The index, which tracks local-currency government bonds across frontier — also known as the Government Bond Index–Emerging Markets Edge (GBI-EM Edge) — is expected to be launched by the end of September, Reuters reported on Monday.   According to reports, the new benchmark will track about $330 billion in local-currency government debt across 26 countries, with Nigeria listed among its major constituents alongside Egypt, Vietnam, Morocco, Kazakhstan, Bangladesh, Pakistan and Sri Lanka.   J.P. Morgan’s index gives individual countries a maximum weighting of 8 percent.     The development comes nearly 11 years after Nigeria was removed from J.P. Morgan’s GBI-EM in 2015.   Nigeria’s 7.4 percent weighting would make it one of the largest markets represented in the new benchmark, potentially increasing the visibility of its domestic government securities among global fixed-income investors.   Reuters reported that J.P. Morgan has been working on the new index for years amid growing investor appetite for high-yielding government debt in frontier markets.     The index is expected to include government bonds with a minimum equivalent value of $250 million and at least 2.5 years to maturity.   African markets are also expected to account for almost 45 percent of the index, while frontier Asian markets will make up nearly one-third.   The report said the benchmark is expected to have an average nominal yield of about 10.4 percent, around 440 basis points higher than J.P. Morgan’s emerging-market local-currency index.   Back-testing, according to Reuters, showed that the new index would have generated returns about 1.2 percentage points higher than the mainstream emerging-market local-currency index since the end of 2017.     Bond indices are closely watched by global fund managers because investors often use them as benchmarks for allocating money across markets.   The latest development comes months after the federal government said it was in talks with J.P. Morgan to be admitted back into its government bond index for emerging markets.

Nigeria’s inclusion in a J.P. Morgan global bond index is expected to attract about $17.5 billion into the country’s debt market and lower bond yields by up to 200 basis points. The post Nigeria rejoins J.P. Morgan Global Bond Index after 11 years appeared first on Premium Times Nigeria.

…$17.47bn FGN debt eligible…Nigeria gets 7.4% weighting By Emma Ujah, Abuja Bureau Chief ABUJA — Nigeria is set to attract fresh foreign capital into its domestic debt market following the decision by global investment banking giant, J.P. Morgan, to return Federal Government of Nigeria (FGN) bonds to its bond index under the newly introduced Government […] The post J.P. Morgan returns Nigeria to bond index after 11 years appeared first on Vanguard News.