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Ukraine war latest: Third round of Russian-Ukrainian talks ends without breakthrough

JPMorgan Chase has announced that it will remove Russian debt from its common bond indices in the latest move to exclude the country from the global financial system since Vladimir Putin went to war with Ukraine.

The Bank will withdraw Russian sovereign and corporate bonds from all of its fixed-income indices as of March 31, following similar announcements from comprehensive index providers MSCIS&P Dow Jones and FTSE Russell Indices.

Imposing sanctions on Russia has made its debt illiquid and virtually uninvestable, pushing many of its bonds into default.

Critically, the decision would exclude Russian bonds from JPMorgan’s corporate and sovereignty indices, as well as its index of emerging market debt.

JPMorgan’s emerging market indices are among the most responsible by investors in the fixed income asset category and serve as an industry index.

The Russian and Belarusian debt will also be excluded from its emerging market indices that follow environmental, social and governmental criteria.

Pramco Dwan, head of emerging market investment portfolio management at Pimco, said he expects Russia to be released because it “does not meet the criteria for marketability or liquidity to be indexed”.

Russia is 0.83% of JPMorgan Emerging Markets’ bond index, which tracks assets of about $ 415 billion. The exclusion itself is not expected to affect the value of the index.

PricingDirect, a service that prices JPMorgan’s indices, is steadily lowering the value of Russia’s bonds.

Read more about JPMorgan’s decision Here

Ukraine war latest: Third round of Russian-Ukrainian talks ends without breakthrough Source link Ukraine war latest: Third round of Russian-Ukrainian talks ends without breakthrough

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