Emerging-market index shake-out may follow trading turmoil – ZAWYA

Emerging-market index shake-out may follow trading turmoil – ZAWYA

LONDON- Disruption in emerging and frontier markets has strained liquidity and disrupted trading functions, triggering what could become a shake-out in benchmark indexes.. Changes in the stocks and bonds that make up the indexes can change where those funds go, and in what amount.. But the impact of the coronavirus pandemic has hit stock and bond markets, limiting liquidity and making it harder to calculate prices.. J.P.Morgan and FTSE Russell last month delayed including Chinese bonds and stocks in their benchmarks.. JPMorgan still includes countries in default within its Emerging Market Bond Index..