Tips and the iceberg
The global market for US government Treasury Inflation-Protected Securities(Tips) and other sovereign inflation-linked bonds is now bigger than that for emerging market debt. But rising interest rates could limit further growth.
According to Bridgewater Associates, the US research firm, the global market for inflation-indexed bonds is now worth $440.8 billion – not that much smaller than the global market for high-yield bonds at $589.2 million, and nearly twice the size of the emerging markets bond business, at $234.6 million.
The UK government was the first to issue inflation-linked bonds (or gilts) back in 1981. Italy
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk management
Microsoft outage disrupts structured notes trading
Document-heavy OTC trades upended as term sheets and confirmations languished in outboxes
One-factor rates models sit behind most XVA calculations
Risk Benchmarking: Dealers coalesce around calibration depth, but runtimes and lookbacks vary sharply
Could a prediction market bet get you fired by your bank?
At least half of US systemic banks limit personal prediction trades, but mention markets still a concern
Dealers still split on XVA desks’ funding remit
Risk Benchmarking: Global dealers use XVA desks to manage swaps funding needs, but most treasuries retain some control
How enterprise risk rose to the top of the bank
Previously a support function, ERM is naturally positioned to identify strategic risks for the board
Can prediction markets pass the institutional sniff test?
Regulated firms need credible event determination methodologies and cross-product margining to enable use, say experts
Most dealers run central XVA desks, but remits vary
Risk Benchmarking: Many banks struggle to track XVA costs and share of derivatives compute
EU banks in India cut contingency costs after clearing deal
Esma MoU with two Indian regulators lifts threat to direct clearing for BNP, SocGen and Deutsche
