JPMorgan Cuts EM Local Currency Debt to ‘Underweight’ as Russia-Ukraine Woes Bite

JPMorgan Cuts EM Local Currency Debt to ‘Underweight’ as Russia-Ukraine Woes Bite
A sign outside the headquarters of JP Morgan Chase & Co. in New York, on Sept. 19, 2013. Mike Segar/Reuters
Reuters
Updated:

JPMorgan analysts have slapped a sell, or “underweight,” recommendation on emerging market local currency sovereign debt due to the global fallout from the Russia-Ukraine crisis.

Emerging market fixed income assets have lost 6–9 percent of their value since Russia invaded its neighbor a month ago, JPMorgan estimates, with nervousness about the war and its impact on global energy and food prices adding to existing pressures.