{"id":15261,"date":"2023-09-25T05:31:44","date_gmt":"2023-09-25T00:01:44","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=15261"},"modified":"2025-04-03T09:38:04","modified_gmt":"2025-04-03T04:08:04","slug":"emerging-markets-bond-index","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/emerging-markets-bond-index\/","title":{"rendered":"Emerging Markets Bond Index"},"content":{"rendered":"<h2><strong>Why in news?<\/strong><\/h2>\n<ul>\n<li>India&#8217;s local bonds will be included in the Government Bond Index-Emerging Markets (GBI-EM) index of the JP Morgan.<\/li>\n<li>It is expected to reach the maximum weight of 10 per cent in the GBI-EM Global Diversified Index (GBI-EM GD).<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3>About Emerging Markets Bond Index:<\/h3>\n<ul>\n<li>It is a benchmark index for measuring the\u00a0<strong>total return performance of international government and corporate bonds\u00a0<\/strong>issued by emerging market countries that meet specific liquidity and structural requirements.<\/li>\n<li>Emerging market\u00a0<strong>bonds are debt instruments<\/strong> issued by developing countries, which tend to\u00a0<strong>carry higher yields than government<\/strong> or corporate bonds of developed countries.<\/li>\n<li>Total 23 Indian Government Bonds (IGBs) with a combined notional value of $330 billion are eligible.<\/li>\n<li>All fall under the category of &#8220;<strong>fully accessible<\/strong>&#8221; for non-residents.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3>Advantages of this inclusion<\/h3>\n<ul>\n<li>This move promises increased demand for the Indian rupee, potentially buffering against depreciation.<\/li>\n<li>Lower borrowing costs can fuel\u00a0<strong>essential infrastructure projects.<\/strong><\/li>\n<li>Increased liquidity may foster more efficient trading conditions.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1) What are Debt instruments?<\/h3>\n<p>These are financial instruments that represent a loan made by an investor to a borrower, typically a government or a corporation. These instruments are widely used in the financial markets as a means for entities to raise capital, and they provide investors with a regular stream of income in the form of interest payments.<\/p>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/jp-morgan-india-emerging-markets-bond-index-8951000\/\" target=\"_blank\" rel=\"nofollow noopener\">India to be part of JP Morgan global bond index, could get $25bn inflows<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Emerging Markets Bond Index is a benchmark index for measuring the total return performance of international government and corporate bonds issued by emerging market countries.<\/p>\n","protected":false},"author":5,"featured_media":15262,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-15261","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/15261","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=15261"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/15261\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/15262"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=15261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=15261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=15261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}