(Bloomberg) — South Korea will join FTSE Russell’s benchmark bond index, capping months of official campaigning and a overhaul of financial market infrastructure in the hopes of attracting tens of billions of dollars of inflows.
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The index provider also added India to its gauge of emerging market debt, according to a statement on Tuesday. Vietnamese stocks, meantime, were kept on a watch list for possible reclassification to emerging market.
“Index shifts are big and important to flows whenever and wherever they happen,” said Bob Savage, head of markets strategy and insight at BNY. “This is no exception. It’s been in the back burner for a while but timing wasn’t sure – so expect it to matter and to drive inflows to South Korea.”
Officials in Seoul actively campaigned for inclusion in the World Government Bond Index, a move they expect to attract as much as 90 trillion won ($67 billion) of foreign…
