JP Morgan unveils emerging market credit derivatives tool.

Financial News, May, 2003

Byline: Vivek Ahuja

JP Morgan, whose emerging market bond index (Embi) is a leading tracker of emerging market debt, has launched a new credit derivative index that will enable fixed-income investors to trade emerging market sovereign credit default swaps for the first time.The emerging markets derivative index (Emdi) aims to attract dedicated emerging market fixed-income investors and cross-over buyers considering investing in the emerging market asset class, which is extremely popular this year.

The Emdi comprises a tradable portfolio of five-year credit default swaps, or contracts that offer bondholders a return in the event of a default. The index references a pool of emerging market sovereign credits included in JP Morgan's emerging markets bond...

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