Philippines in talks with JPMorgan for peso bonds inclusion

The Philippines is currently in discussions with JPMorgan Chase & Co. to include its peso bonds to the US bank’s emerging-market debt index, which is followed by global funds worth billions of dollars.

Finance Secretary Ralph Recto confirmed to Bloomberg News that he is aware of the ongoing talks and is awaiting an update.

Joining this benchmark is a significant milestone for emerging economies, as it attracts fresh inflows of overseas capital into their debt markets. India, for instance, joined the gauge in late June after being on watch for eligibility for three years.

For officials in Manila, the talks represent a potential turnaround following the exclusion of its local-currency debt from the index. The illiquidity of the country’s peso bonds is due to local investors’ preference to hold them until maturity.

The Philippines is not alone in being removed from the index in recent years. Russia was excluded in 2022 after the invasion of Ukraine, and Egypt was cut earlier this year due to severe foreign exchange shortages.

A spokesperson for JPMorgan did not respond to Bloomberg’s request for comment via email and telephone.

Attribution: Bloomberg