Russia to Be Excluded from JPMorgan Fixed-Income Indexes

Tuesday, 08/03/2022 | 00:30 GMT by Felipe Erazo
  • An investors' poll took place over the weekend about the matter.
  • JPMorgan put Russia on index watch on March 1.
JPMorgan

JPMorgan, the US-based investment bank, said on Monday that Russia would be excluded from all its fixed-income indexes on March 31. According to a statement quoted by Reuters, the manoeuvre was decided by the bank after Russia was placed on an index watch in March following sanctions imposed by the United States.

JPMorgan surveyed investors on the possibility of including Russia's local and hard currency debt in its benchmarks over the weekend. In a poll conducted on 'Survey Monkey' seen by Reuters, Wall Street bank asked whether sovereign and corporate bonds and securities denominated in hard currency and roubles should be retained or removed.

Those anticipating that securities will be removed are asked about their preferred timing, at the end of March or the end of April. The bank runs a family of hard-currency sovereign indexes called EMBI, as well as a corporate debt index called CEMBI. In addition, there is the GBI-EM benchmark for local debt in emerging currencies and JESG, which is based on environmental, social and governance factors.

Based on bank information, assets worth $842 billion are benchmarked against those indexes. The EMBIG Diversified index of the bank weights Russia at 0.89% and the ESG version has an even higher weighted rating of 1.03%. In addition, it is being investigated whether or not the debt from Russian ally Belarus should be removed from JPMorgan's ESG index series.

PayPal's Services Suspension

On Saturday, PayPal confirmed that it had suspended its payment services in Russia amid the invasion of Ukraine. Dan Schulman, the President and Chief Executive Officer of PayPal, said that the tragedy in Ukraine has been devastating for all.

PayPal joins a list of other leading financial firms seizing operations in Russia. According to Schulman, PayPal stands with the people of Ukraine. For its employees in Russia, the company is providing all possible support.

JPMorgan, the US-based investment bank, said on Monday that Russia would be excluded from all its fixed-income indexes on March 31. According to a statement quoted by Reuters, the manoeuvre was decided by the bank after Russia was placed on an index watch in March following sanctions imposed by the United States.

JPMorgan surveyed investors on the possibility of including Russia's local and hard currency debt in its benchmarks over the weekend. In a poll conducted on 'Survey Monkey' seen by Reuters, Wall Street bank asked whether sovereign and corporate bonds and securities denominated in hard currency and roubles should be retained or removed.

Those anticipating that securities will be removed are asked about their preferred timing, at the end of March or the end of April. The bank runs a family of hard-currency sovereign indexes called EMBI, as well as a corporate debt index called CEMBI. In addition, there is the GBI-EM benchmark for local debt in emerging currencies and JESG, which is based on environmental, social and governance factors.

Based on bank information, assets worth $842 billion are benchmarked against those indexes. The EMBIG Diversified index of the bank weights Russia at 0.89% and the ESG version has an even higher weighted rating of 1.03%. In addition, it is being investigated whether or not the debt from Russian ally Belarus should be removed from JPMorgan's ESG index series.

PayPal's Services Suspension

On Saturday, PayPal confirmed that it had suspended its payment services in Russia amid the invasion of Ukraine. Dan Schulman, the President and Chief Executive Officer of PayPal, said that the tragedy in Ukraine has been devastating for all.

PayPal joins a list of other leading financial firms seizing operations in Russia. According to Schulman, PayPal stands with the people of Ukraine. For its employees in Russia, the company is providing all possible support.

About the Author: Felipe Erazo
Felipe Erazo
  • 1036 Articles
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About the Author: Felipe Erazo
Felipe earned a degree in journalism at the University of Chile with the highest honour in the overall ranking, and he also holds a Bachelor of Arts in Social Communication. In addition, he has been working as a freelance writer and Forex/crypto analyst, with experience gained from several forex broker firms and crypto-related media outlets around the world. He has been involved in the world of online forex trading since 2010 and in the crypto sphere since 2015.
  • 1036 Articles
  • 42 Followers

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