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Uzbekistan looks set to become the 73rd EMBI GD member

Weekly investor research

18 February 2019

Uzbekistan issued its inaugural sovereign Dollar-denominated bond last week. This means that Uzbekistan will likely become the 73rd EM country in the JP Morgan EMBI GD index. The enormous diversity of this index underlines the foolishness of treating the asset class as a homogenous entity. Indeed, this point is also illustrated by the distinctly diverse set of news stories across existing index members in the past week. We highlight the good and the bad news in this Weekly. Good news for Chinese bondholders as inflation declines. Bad news for Russian bondholders as the United States moves to impose further sanctions. Good news for Brazilian bondholders as the government pension reform looks likely to deliver the expected savings. Bad news for Argentina’s government as inflation surges on changes in regulated prices. Good news for Papua New Guinea as Moody’s changes the sovereign credit outlook from negative to stable. Bad news for Mexico as AMLO disappoints and industrial production slows. Good news for Modi in India as the data comes in solid.

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