LONDON: Government bonds tend to get inclusion in the global index in 2022, bringing potential inflows between $ 30 billion and $ 40 billion, estimates of HSBC analyst.
HSBC said the announcement of Indian inclusion in the Bloomberg Global Aggregate Index (BGAI) and the GBI-EM Index JPMorgan (GBI-EM) could occur before the end of 2021, with inclusion to be followed in 2022.
Bonds could suck in the current potential.
$ 30 billion of up to $ 40 billion in a fully accessible (FAR) route event government effect included in both indices, HSBC said.
Reserve Bank of India introduced last year to attract foreign investors.
Foreign ownership of bonds as far as will increase from 3% now up to 10% -13%, HSBC estimates.
“For them (markets that emerge) investors, low Indian ownership of Indian bonds, strong external balances and relatively low correlations of the results of Indian government bonds with the main bond market can provide interesting sources of diversification,” analysts said in the notes.