 | This articleneeds additional citations forverification. Please helpimprove this article byadding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "JPMorgan EMBI" – news ·newspapers ·books ·scholar ·JSTOR(December 2009) (Learn how and when to remove this message) |
TheJPMorgan Emerging Market Bond Index (EMBI) are a set of threebond indices to trackbonds in emerging markets operated byJ P Morgan. The indices are theEmerging Markets Bond Index Plus, theEmerging Markets Bond Index Global and theEmerging Markets Bond Global Diversified Index.
The Emerging Markets Bond Index Plus (EMBI+) tracks total returns for traded external debt instruments (external meaning foreign currency denominated fixed income) in the emerging markets. The regular EMBI index covers U.S.dollar-denominatedBrady bonds, loans and Eurobonds. The EMBI+ expands upon J.P.Morgan's original Emerging Markets Bond Index (EMBI), which was introduced in 1992 and covered onlyBrady bonds. An external debt version, the EMBI+ is theJPMorgan EMBI Global Index[1]
In addition to serving as a benchmark, the EMBI+ provides investors with a definition of the market for emerging markets external-currency debt, a list of the instruments traded, and a compilation of their terms.
The index comprises a set of broker-traded debt instruments widely followed and quoted by several market makers. Instruments in the EMBI+ must have a minimum face value outstanding of $500 million and must meet strict criteria for secondary market trading liquidity.
The J.P.Morgan Emerging Markets Bond Index Global ("EMBI Global") tracks total returns for traded external debt instruments in the emerging markets, and is an expanded version of theJPMorgan EMBI+. As with the EMBI+, the EMBI Global includes U.S.dollar-denominatedBrady bonds, loans, and Eurobonds with an outstanding face value of at least $500 million. It covers more of the eligible instruments than the EMBI+ by relaxing somewhat the strict EMBI+ limits on secondary market trading liquidity.[1]
The EMBI Global Diversified limits the weights of those index countries with larger debt stocks by only including a specified portion of these countries eligible current face amounts of debt outstanding.[1]