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Glossary

Emerging Markets Bond Index (EMBI)

Category — Analytical Metrics

EMBI Indices is a set of three bond indices calculated by JP Morgan Chase, an American financial holding company. This set of indices tracks bonds in emerging markets. The set of indices includes the following indices:


Emerging Markets Bond Index Plus (EMBI+). This index tracks total returns for traded external debt instruments (external meaning foreign currency denominated fixed income) in the emerging markets. The regular EMBI index covers U.S. dollar-denominated Brady bonds, loans and Eurobonds.


In addition to serving as a benchmark, the EMBI+ provides investors with a definition of the market for emerging markets external-currency debt, a list of the instruments traded, and a compilation of their terms. The index comprises a set of broker-traded debt instruments widely followed and quoted by several market makers. Instruments in the EMBI+ must have a minimum par value outstanding of USD 500 million and must meet strict criteria for secondary market trading liquidity.


The Emerging Markets Bond Index Global (EMBI Global) tracks total returns for traded external debt instruments in the emerging markets, and is an expanded version of the JPMorgan EMBI+. As with the EMBI+, the EMBI Global includes U.S. dollar-denominated Brady bonds, loans, and Eurobonds with an outstanding par value of at least USD 500 million. It covers more of the eligible instruments than the EMBI+ by relaxing somewhat the strict EMBI+ limits on secondary market trading liquidity.


The Emerging Markets Bond Global Diversified Index (EMBI Global Diversified) limits the weights of those index countries with larger debt stocks by only including a specified portion of these countries eligible current face amounts of debt outstanding.
 

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