Nigeria Returns to J.P. Morgan Bond Index With 7.4% Weighting

J.P. Morgan has included Nigeria in its new Government Bond Index Emerging Markets Edge, assigning the country a 7.4% weighting. The index, expected to launch by the end of September, will track about $330 billion in local-currency government debt across 26 frontier markets. Nigeria will be among the largest markets in the benchmark, alongside countries including Egypt, Vietnam, Morocco, Bangladesh, Pakistan and Sri Lanka. No individual country will have a weighting above 8%. The inclusion may raise the visibility of Nigerian government bonds among international fixed-income investors. It comes almost 11 years after Nigeria was removed from J.P. Morgan’s main emerging-markets government bond index in 2015. Eligible bonds must be worth at least the equivalent of $250 million and have a minimum of two and a half years left to maturity. The new benchmark is expected to carry an average nominal yield of about 10.4%.

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