JPMorgan said emerging market debt is at the mercy of the Federal Reserve's interest rate decisions. However, it removed Nigeria from its list of sovereign recommendations for emerging markets in which investors should be "overweight".

According to JPMorgan analysts, the U.S. central bank's rate hikes are draining capital from developing markets. JPMorgan removed Nigeria from its list of sovereign recommendations for emerging markets in which investors should be "overweight", saying the country has not benefited from high oil prices, while adding Serbia and Uzbekistan.

Analytians said Nigeria's national oil company did not transfer any revenue to the government from January to March this year, due to gasoline subsidies and low oil production, which pushed Nigeria's debt out of the cate. "overweight" gorie of the bank.

However, analysts said the "frontal pain" for emerging market bonds, which they said began to underperform in September 2021, was a positive element.