Inflation-linked bonds Ready for take-off, or a load of hot air?

index-linked market

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Even by the standards of financial markets, the inflation-linked market has been inordinately hyped during its relatively brief life. Bankers constantly reiterate the vast potential for issuance and investment. Every new issue is heralded as a breakthrough and every new mandate for investment is seen as proof that inflation-linked products are growing inexorably.

Yet – and though Credit is loath to admit when investment bankers' claims prove to be substantiated – it appears that there i