JPMorgan plans frontier bond index for over 25 African and Asian countries

• Index would track high-yield frontier local-currency bonds
• Move could drive major inflows into smaller economies

JPMorgan Chase is finalising plans to launch a new benchmark tracking local-currency government bonds issued by frontier economies, according to people familiar with the matter.

The proposed index would institutionalise one of the highest-yielding and riskiest corners of global fixed income, marking a further step in investors’ search for returns beyond crowded emerging-market assets.