Saudi Arabia Gets Boost as it Will Be Included in the FTSE Emerging Markets Government Bond Index for April 2022
Posted on 10/02/2021
Index provider FTSE Russell plans to add several countries to its fixed-income emerging markets bond indexes in April 2022. These countries would likely benefit from inflows, as some investors are passive fixed income investors.
Saudi Arabia
Saudi Arabia will be included in the FTSE Emerging Markets Government Bond index. Saudi Arabia is expected to comprise 2.75% of the index on a market value-weighted basis. Saudi Arabia is home to larger pools of capital, including the Public Investment Fund of Saudi Arabia. In addition, Saudi companies including Saudi Aramco continue to launch bond offerings, increasing the liquidity of the kingdom’s bond markets.
Kazakhstan
Kazakhstan’s government bonds will be included in April 2022 in the newly launched FTSE Frontier Emerging Markets Government Bond index
New Zealand
New Zealand will enter the FTSE World Inflation-Linked Securities index and will comprise 0.45% of the index on a market value-weighted basis.
Watch Lists
India is on the watch list for an upgrade to the FTSE Emerging Markets Government Bond index.
Switzerland was placed on a watchlist for a potential inclusion to the World Government Bond index.
