Markit Launches EM Debt Indices

Markit, the financial information services company, has launched some USD EM debt indices called Markit iBoxx to cater to increased investor interest in EM debt. The benchmarks add to Markit’s GEMX index, launched in 2008, which tracks the performance of EM sovereign debt denominated in local currency. The new index family includes a liquid tradable index which Markit says will be used as the basis for index-linked tradable products such as ETFs. The benchmark index comprises 37 EM countries and 190 bonds, and is rebalanced monthly. The tradable index comprises 20 countries and 36 bonds which are selected quarterly from the benchmark index based on the total amount outstanding for each country in the benchmark index and the latest quarterly bond trading volumes.