JPMorgan finalizes the launch of a new index tracking local currency bonds in frontier markets. The index addresses increasing investor demand for exposure to riskier, high-yield debt in developing economies.
The proposed index will feature 20 to 25 countries. Egypt, Vietnam, Kenya, Pakistan, and Nigeria are expected to hold significant weightings.
This development follows the bank's introduction of the hard-currency Next Generation Markets Index (NEXGEM) 15 years ago. The local currency version aligns with recent strong performance across several frontier markets. It aims to provide a new benchmark for this growing segment of global finance.
Sources indicate the plans are in an advanced stage. JPMorgan officially declined to comment on the new index.