JPMorgan says emerging market sovereign debt at “mercy” of Fed, cuts Nigeria from overweight

Source: Reuters

“Emerging market sovereign debt is at the ‘mercy’ of the Federal Reserve’s interest rate decisions, JPMorgan analysts said in a note on Monday, as the U.S. central bank’s rate raises drain capital from developing markets. JPMorgan removed Nigeria from its list of emerging market sovereign recommendations that investors should be ‘overweight’ in, saying the country had not taken advantage of high oil prices, while adding Serbia and Uzbekistan. Last week, the Fed raised its benchmark overnight interest rate by half a percentage point, the biggest jump in 22 years, as it seeks to tame high inflation while its rate increases also buffet higher-yielding emerging markets.” (05/09/22)