Reported 11 months ago
JPMorgan forecasts that South Africa, Thailand, and Poland are at risk of facing significant outflows as India's sovereign bonds are included in a key global index. The inclusion of Indian bonds in JPMorgan's emerging market index is expected to trigger outflows from other emerging markets as India's weight in the index grows to 10% by March. Foreign investors have been pouring funds into India's bond market, with estimated outflows of $4.7 billion for South Africa, $3.3 billion for Poland, and $3.2 billion for Thailand. JPMorgan identifies these countries as the 'biggest losers' from India's index inclusion due to their vulnerability to outflows.
Source: YAHOO