For more information please contact us
ashmail [at] ashmoregroup [dot] com (Email Ashmore)
Bigger is better
Weekly investor research
03 August 2015
New index changes proposed by JP Morgan for its suite of EM fixed income indices will favour larger issues and issuers. As
such the index changes, if adopted, will make it easier for Wall Street banks to trade EM securities, but at the cost of smaller,
less liquid issuers. We also discuss the implications for Brazil of S&P’s negative outlook, Mexico’s domestic demand, potential
changes in the monetary policy framework in Turkey, subsidy changes in UAE and possible new Chinese money for Venezuela
and Argentina. The global backdrop remains challenging for EM as US growth and employment costs continue to disappoint.