Phl seeks re-inclusion in JP Morgan bond index

The Philippines will likely benefit from a renewed wave of investor interest if the country is re-included in JP Morgan’s widely tracked emerging markets bond index (EMBI), according to Metropolitan Bank & Trust Co. (Metrobank).

- KEISHA TA-ASAN

In a report, Metrobank chief economist Nicholas Mapa said talks between government officials and JP Morgan are a positive sign, suggesting that the country may have a more significant presence in the index.

“The return of the Philippines to any potential bond index would translate to increased foreign investment flows. This is important because it could bring more foreign money into the Philippines,” Mapa said.

He said that when a country is included in bond indexes, investors who follow them closely often buy bonds from that country.

For example, if the Philippines was given a five percent share in the index, investors might also put about five per cent of their funds into Philippine bonds, he said.