European pension firms are crying out for long-dated, inflation-linked assets. Meeting that demand, however, has proven difficult. Government issuance is not enough to satisfy demand; corporate issuers have all but disappeared from the inflation-linked bond market amid the high cost of issuance; and the introduction of IAS 39 in January has meant firms such as utility companies, which might have tapped the inflation-linked swaps market in the past to match off their inflation-linked revenue

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