FTSE Bond Market Index Revamp Sparks Interest in South Korean and Indian Bond Markets
FTSE Bond Market Index Revamp: Implications for South Korean and Indian Bond Markets
With the FTSE Bond Index revamp on the horizon, the South Korean bond market is making strides to secure its place within major benchmarks. Korea has implemented critical reforms in its currency and debt-market operations, aiming for inclusion in the World Government Bond Index (WGBI).
South Korea's Strategic Moves
- Reform Enhancements: Extended trading hours for the Korean won.
- Infrastructure Development: Collaboration with Euroclear.
- Investor Expectations: Up to 90 trillion won influx anticipated.
However, challenges remain, with minimal transactions observed via Euroclear indicating potential delays in inclusion timeline.
India's Position in Global Markets
Conversely, the Indian bond market has maintained a robust stance despite falling short on certain reforms. Inclusion in JPMorgan’s emerging-market index enhanced its visibility among investors.
- Market Dynamics: $14 billion inflows into India's index-eligible bonds this year.
- Regulatory Improvements: Ongoing efforts to simplify foreign investor registration.
- Economic Relevance: Strategic edge against traditional competitors in the region.
As the FTSE Russell prepares to unveil new inclusions, the competitive landscape between South Korean and Indian bond markets will shape the strategies of countless global investors seeking higher yields and diversification.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.