JP Morgan starts Russia corporate bond index

By Reshmi Basu

New York, March 23 - JP Morgan said it is adding a new Russian corporate bond index, called Rubi Corp to its family of fixed income indexes.

The index's purpose it to track corporate risk in Russia and provide a benchmark for U.S. dollar-denominated liquid Russian corporate issues.

The Rubi Corp is a U.S. dollar-denominated, market capitalization-weighted index, which includes 21 Russian corporate instruments representing four sub-indexes: oil and gas, banks, telecoms and other.

The index will commence on April 1.

Daily historical index levels will be available from Dec. 31, 2001.

"The Russian corporate bond universe has grown significantly since the crisis in 1998 and we expect further growth in 2004," said Gloria Kim, vice president and manager of JP Morgan's emerging market bond indexes, in a news release release.

"We want to provide investors with a diligently managed index to capture the development of this market."

JP Morgan is applying a similar set of criteria that it utilizes in the EMBI Global index.

To be included in the Rubi Corp, the issue must be a U.S. dollar-denominated Russian corporate bond with a minimum size of $150 million.

New issues must have a maturity of 18 months while existing issues must have at least 12 months to run to maturity.

The bond must settle internationally and have a cash flow structure that allows for the daily calculation of returns.

Also, daily bid and offer prices must be available.

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