{"id":561222,"date":"2021-03-30T04:21:11","date_gmt":"2021-03-30T04:21:11","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/30\/egypt-could-be-back-on-jp-morgans-em-bonds-index-in-2h2021\/"},"modified":"2021-03-30T04:21:11","modified_gmt":"2021-03-30T04:21:11","slug":"egypt-could-be-back-on-jp-morgans-em-bonds-index-in-2h2021","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/30\/egypt-could-be-back-on-jp-morgans-em-bonds-index-in-2h2021\/","title":{"rendered":"Egypt could be back on JP Morgan\u2019s EM bonds index in 2H2021"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-05\"><\/a> <strong>Egypt is expected to secure a spot on JP Morgan\u2019s emerging-market government <\/strong><strong>bonds index in 2H2021<\/strong>, unlocking up to USD 4.8 bn in new inflows from passive funds that track the index, and potentially leading to a 5% EGP appreciation against the USD, Rand Merchant Bank economist Neville Mandimika told <a href=\"https:\/\/www.reuters.com\/article\/uk-egypt-economy-relisting\/egypts-relisting-on-jp-morgan-bond-index-could-attract-48-billion-rmb-says-idUSKBN2BL1MJ\">Reuters<\/a>. This would end a decade of absence from the index, which Egypt was removed from in 2011 in the aftermath of the 25 January Revolution.<\/p>\n<p><strong>Why we\u2019re eligible now: <\/strong>Egypt now has a combined nominal USD 28.2 bn in longer-term bonds maturing in over 2.5 years, which is the minimum maturity for inclusion in the index. The inclusion of its eligible debt instruments would give Egypt a 2% weighting in the index and divert a portion of around USD 240 bn of assets under management. It could also lead to a natural decrease in yields, which tend to drop an average 130 bps before inclusion, Mandimika said.<\/p>\n<p><strong>Egypt\u2019s strong economic performance since the completion of the IMF reform program is another factor: <\/strong>The government has, since 2019, maintained consistent primary budget surpluses, and \u201cpaved the way for its debt-to-gross-domestic-product profile to compress,\u201d Mandimika says. Egypt began <a href=\"https:\/\/enterprise.press\/stories\/2019\/03\/10\/egypt-begins-implementing-debt-reduction-strategy\/\">implementing<\/a> a comprehensive debt strategy last March, focusing on moving toward longer-term debt and prioritizing a long-term reduction in the debt-to-GDP, which stood at 86.1% at the end of the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/6b494276-a8d3-4255-84e5-16b622eb9b4e\">last fiscal year<\/a> after having been above 100% before authorities started implementing the IMF-backed program in 2016.<\/p>\n<p><strong>Why is inclusion good for Egypt? <\/strong>Authorities have been <a href=\"https:\/\/enterprise.press\/stories\/2019\/02\/03\/egypt-seeks-inclusion-in-jpmorgan-em-bond-indexes\/\">working towards this goal<\/a> for over two years in a bid to cut borrowing costs and boost inflows. Inclusion would add Egyptian bonds to a list of sovereign instruments gauged by leading investment banks to inform large index-tracking ETFs which invest in the entire EM debt market. The index is <a href=\"https:\/\/www.investopedia.com\/terms\/e\/emerging-markets-bond-index.asp\">among the most popular<\/a> benchmarks for bond performance and is widely used by money managers.<\/p>\n<p><strong>The ball\u2019s in JPMorgan\u2019s court now: <\/strong>Finance Minister Mohamed Maait <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/95e658a0-969e-43ad-84b1-5ad3188839e2\">told Bloomberg<\/a> in December 2020 that the ministry had fulfilled nearly all of JPMorgan\u2019s requirements, and was waiting to hear back from them, but we\u2019ve heard nothing official from the ministry since then.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Egypt is expected to secure a spot on JP Morgan\u2019s emerging-market government bonds index in 2H2021, unlocking up to USD 4.8 bn in new inflows from passive funds that track the index, and potentially leading to a 5% EGP appreciation against the USD, Rand Merchant Bank economist Neville Mandimika told Reuters. This would end a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7274],"tags":[88,72,262],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-561222","post","type-post","status-publish","format-standard","hentry","category-debt-watch","tag-debt-watch","tag-enterpriseam","tag-jpmorgan","wpautop","entry"],"acf":{"mongo_id":"a5aae968-5b2f-4ad1-a71b-3fcef02a764d","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[561211],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Egypt could be back on JP Morgan\u2019s EM bonds index in 2H2021 - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/30\/egypt-could-be-back-on-jp-morgans-em-bonds-index-in-2h2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Egypt could be back on JP Morgan\u2019s EM bonds index in 2H2021\" \/>\n<meta property=\"og:description\" content=\"Egypt is expected to secure a spot on JP Morgan\u2019s emerging-market government bonds index in 2H2021, unlocking up to USD 4.8 bn in new inflows from passive funds that track the index, and potentially leading to a 5% EGP appreciation against the USD, Rand Merchant Bank economist Neville Mandimika told Reuters. 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Portfolio flows should pick up over the next six months if Egyptian debt is made \u201cEuroclearable\u201d and the country\u2019s local-currency\u2026","rel":"","context":"In &quot;SPEED ROUND: ECONOMY&quot;","block_context":{"text":"SPEED ROUND: ECONOMY","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/8\/340.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":562904,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/10\/ftse-russell-index-inclusion-could-bring-usd-4-bn-into-egp-bonds-says-finmin\/","url_meta":{"origin":561222,"position":1},"title":"FTSE Russell index inclusion could bring USD 4 bn into EGP bonds, says FinMin","author":"enterpriseam admin","date":"10 June 2021","format":false,"excerpt":"The Finance Ministry is expecting an additional USD 4 bn in foreign inflows into Egyptian debt on the back of Egypt\u2019s inclusion in the FTSE Russell\u2019s new frontier-market sovereign bond index, Finance Minister Mohamed Maait said in a statement yesterday. The British index provider yesterday launched its Frontier Emerging Markets\u2026","rel":"","context":"In &quot;MARKET WATCH&quot;","block_context":{"text":"MARKET WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/market-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/6\/149.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":622424,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/10\/01\/egypt-angling-for-inclusion-in-jp-morgan-emerging-markets-bond-index\/","url_meta":{"origin":561222,"position":2},"title":"Egypt angling for inclusion in JP Morgan emerging markets bond index?","author":"enterpriseam admin","date":"1 October 2018","format":false,"excerpt":"Egypt angling for inclusion in JPM EM bond index? Egypt reportedly wants to be included in JP Morgan\u2019s emerging markets government bonds index, three sources familiar with the matter tell Bloomberg. In preparation for its pitch, the government is taking steps to make Egypt\u2019s debt eligible for including, including starting\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":556181,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/14\/our-sovereign-debt-should-finally-be-back-on-jpmorgan-ems-govt-debt-index-in-january-2022\/","url_meta":{"origin":561222,"position":3},"title":"Our sovereign debt should finally be back on JPMorgan EMs gov\u2019t debt index in January 2022","author":"enterpriseam admin","date":"14 October 2021","format":false,"excerpt":"Egypt is expected to make it back onto JPMorgan\u2019s emerging-market sovereign bond index by the end of January 2022, the US investment bank said in a research note picked up by Reuters. The country is eligible for a weight of close to 1.85%, with 14 government bonds with a combined\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/10\/155.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":553907,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/13\/egypt-to-rejoin-jpmorgan-em-bond-index-in-january-2022\/","url_meta":{"origin":561222,"position":4},"title":"Egypt to rejoin JPMorgan EM bond index in January 2022","author":"enterpriseam admin","date":"13 December 2021","format":false,"excerpt":"Egypt is set to join JPMorgan\u2019s Emerging Markets Bond Index (EMBI) by the end of January with an estimated weight of 1.8%, Finance Minister Mohamed Maait announced yesterday, according to a cabinet statement. Some 14 government bonds, with a total value of USD 26 bn, are expected to enter the\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/317.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":543430,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/02\/01\/egypt-rejoins-jpmorgan-bond-index\/","url_meta":{"origin":561222,"position":5},"title":"Egypt rejoins JPMorgan bond index","author":"enterpriseam admin","date":"1 February 2022","format":false,"excerpt":"Egypt rejoined JPMorgan\u2019s emerging-market bond index following a decade of absence yesterday in a move that could bring new passive flows into the local debt market. Fourteen EGP bonds worth around USD 26 bn have been added to the JPMorgan GBI-EM Global Diversified Index, giving Egypt a weighting of 1.85%,\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/2\/2.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/561222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=561222"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/561222\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/561211"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=561222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=561222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=561222"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=561222"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=561222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}