LONDON, April 15 (Reuters) - U.S. sanctions announced on
Thursday on newly-issued Russian government debt could see the
bonds excluded from JPMorgan's influential emerging market
local-currency GBI-EM investment index, the bank said.
"Economic sanctions which impact the replicability of the
J.P. Morgan fixed income indices will result in an Index Watch
(observation period) followed by potential rebalance actions
such as exclusion of the sanctioned bonds/issuers from the
benchmark," JPMorgan said.
That said, JPMorgan added there would be no immediate impact
on the existing EMBI or GBI-EM series composition.
"Existing index composition, i.e. rouble-denominated Russia
government bonds (OFZs) in the GBI-EM series, dollar- and
euro-denominated Russia sovereign and quasi-sovereign bonds in
the EMBI and Euro EMBIG series, will remain eligible at this
time provided these securities satisfy all other index
(Reporting by Marc Jones
Editing by Chris Reese)