JPMorgan reviewing impact on its indexes of U.S. sanctions on Russian debt -source
Reuters
Published Feb 23, 2022 04:32PM ET
Updated Feb 23, 2022 05:31PM ET
NEW YORK (Reuters) -JPMorgan is reviewing the impact that newly imposed U.S. sanctions on Russian sovereign debt may have on its emerging market bond indexes, a source familiar with the matter said.
The U.S. government broadened restrictions on trading of Russian government debt on Tuesday in a bid to punish Moscow for ratcheting up its conflict with Ukraine.
JPMorgan (NYSE:JPM) is a major provider of emerging market indexes for local currency and hard currency bonds.
The indexes are key performance benchmarks for international investors in emerging market debt, so membership can help a country sell bonds and reduce its borrowing costs.
The U.S. Treasury said on Tuesday it was prohibiting participation in the secondary market for Russian government bonds that will be issued after March 1, in a move aimed at curbing Russia's ability to access external funding.
U.S. investors have been banned from buying new dollar-denominated Russian debt since 2014, when Russia annexed Crimea.
U.S. banks have been barred from taking part in the primary market for non-rouble sovereign bonds since 2019 and last year U.S. President Joe Biden also barred U.S. financial institutions from taking part in the primary market for rouble-denominated Russian sovereign bonds.
JPMorgan's emerging market strategists said in a note to clients on Wednesday that the new U.S. sanctions on Russian sovereign debt were likely to have limited implications for the international investors that already hold Russian paper.
With total foreign ownership of Russian debt at about $64 billion, and Russia’s reserves in excess of $630 billion, sanctions on sovereign debt are likely to have a limited economic impact, said Elina Ribakova, deputy chief economist at the Institute of International Finance.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.