JPMorgan May Trim China, India Share in EM Index

JPMorgan Chase & Co. is considering cutting the weight of the largest bond issuers in its flagship emerging-market index—including China and India—as it seeks to reflect a broader range of developing-nation debt.

- Bloomberg

The Wall Street bank has been soliciting feedback from clients on amendments to its GBI-EM Global Diversified index, the benchmark for local-currency developing-nation debt that's tracked by more than $200 billion of funds, documents seen by Bloomberg show.

One of the proposals envisages lowering a cap on individual countries from 10% to 8.5%, a move that could increase the average yield of the benchmark as nations with higher borrowing costs gain a bigger presence, according to the documents.