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JPMorgan Launches the Corporate Emerging Markets Bond Index , CEMBI.

The Global Corporate Benchmark is the Latest Addition To JPMorgan's Family of Fixed Income Indices

NEW YORK New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 -- JPMorgan today announced the introduction of its Corporate Emerging Markets Bond Index (CEMBI CEMBI Corporate Emerging Markets Bond Index (JPMorgan) ), a global, liquid corporate emerging markets benchmark that tracks U.S.-denominated corporate bonds issued by emerging markets entities. The CEMBI is the first in a series of corporate emerging markets indices JPMorgan plans to introduce.

Today's launch also includes the first hybrid index in the JPMorgan emerging markets fixed income family - the CEMBI HYBRID, which integrates corporates and sovereigns. The CEMBI HYBRID will incorporate the newly created CEMBI and the widely used EMBI EMBI Emerging Markets Bond Index
EMBI Emergency Management for Business & Industry

The corporate CEMBI is a liquid basket of emerging markets corporate issues which include approximately 80 bonds, representing 60 issuers and 16 countries (as of Oct 31, 2007). The CEMBI has strict liquidity criteria for inclusion in order to provide replicability, tradability, robust pricing and data integrity. The CEMBI BROAD, which JPMorgan plans to launch in coming months, will be more comprehensive and will include smaller issues to cover a wider array of corporate bonds. The minimum amount outstanding required will likely be $350mm for the CEMBI BROAD compared to $500 million for the replicable and tradable CEMBI. There will also be a diversified version for both series to provide a well-distributed, more balanced weightings for countries included in the index.

"We created the CEMBI in response to the rapid increase of corporate issuance and the need for a diligently managed global corporate index", said Gloria M. Kim, head of JPMorgan's Global Bond Index Group. "It continues a legacy of premier index products developed by JPMorgan and underscores the firm's dedication to developing emerging markets."

One key feature of the CEMBI is the liquidity of the underlying basket. The CEMBI will allow JPMorgan to provide a full range of tradeable products, starting with total return swaps Total Return Swap

Any swap in which the non-floating rate side is based on the total return of an equity or fixed income instrument with a life longer than the swap.

Total return swaps are most common in equity or physical commodity markets.
 and funded certificates. JPMorgan's market-making on the CEMBI will be a tool for investors to take directional views or implement relative value strategies in the emerging markets corporate space.

Annual external debt issuance from emerging market corporates has risen from $21 billion in 2002 to $115 billion in 2006 and has already exceeded $140 billion this year. "This market is growing rapidly and generating significant interest from investors, both from traditional emerging market funds and from dedicated corporate credit investors that may be entering emerging markets for the first time," said Victoria Miles co-head of Emerging Markets Corporate Credit Research at JPMorgan.

"This index will play a key role in the further development of the asset class, providing investors with an important tool for benchmarking and assessing relative value across global credit markets," concluded Warren Mar, co-head of Emerging Markets Corporate Credit Research at JPMorgan.

Daily historical index levels and statistics are available from December 31, 2001. Clients and investors can access index levels and statistics for the CEMBI on JPMorgan's client-only research website, and on Bloomberg page, <JPMX>.

About JPMorgan Chase JPMorgan Chase (NYSE: JPM TYO: 8634 ) is one of the oldest financial services firms in the world. The company, headquartered in New York City, is one of the leaders in investment banking, financial services, asset and wealth management and private equity. With assets of $1.  & Co.

JPMorgan Chase & Co. (NYSE NYSE

See: New York Stock Exchange
: JPM JPM J. P. Morgan Chase & Co. (stock symbol)
JPM Juan Pablo Montoya (formula 1 driver)
JPM Jabatan Perdana Menteri (Malaysia)
JPM Journal of Property Management
) is a leading global financial services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page.
 firm with assets of $1.5 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers and businesses, financial transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time.

Transaction processing systems are the backbone of an organization because they update constantly.
, asset and wealth management, and private equity. A component of the Dow Jones Industrial Average Dow Jones Industrial Average

The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange.
, JPMorgan Chase & Co. has its corporate headquarters in New York and its U.S. retail financial services and commercial banking headquarters in Chicago. Under the JPMorgan, Chase and Bank One brands, the firm serves millions of consumers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  and many of the world's most prominent corporate, institutional and government clients. Information about the firm is available at
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Date:Nov 8, 2007
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