iBoxx USD Liquid Emerging Markets Index Overview

This document is an index education report detailing the iBoxx USD Liquid Emerging Markets Sovereigns & Sub-Sovereigns index. The index tracks U.S. dollar-denominated bonds from sovereign and sub-sovereign issuers in emerging markets, providing a broad measure of these bonds while adhering to liquidity criteria. Eligible debt must have a notional amount of at least USD 1 billion and a minimum one-year maturity from the rebalance date. The document outlines the index's capping methodology, which is based on average country weight and weight-based capping, and explains the differences between this index and other benchmarks like J.P. Morgan's EMBIG CORE. It also discusses the trading efficiency of liquid versus non-liquid bonds, the tradable ecosystem including ETFs and swaps, and the investment landscape of emerging market debt. The report emphasizes the growing interest in emerging market debt and the need for a more inclusive market infrastructure.