Inflation
Pension funds face huge bill from UK indexing change, analysts warn
Using CPI instead of RPI was intended to save money - but could end up costing UK pension funds billions
We must accept central banks’ limitations, says Fed’s Plosser
Philadelphia Federal Reserve president warns mistaken view of central banks as omnipotent risks damaging their credibility
Finger-pointing masks officials’ failures, says Sarb’s Marcus
South African Reserve Bank governor Gill Marcus says knee-jerk reforms ignore failure of policymakers to raise standards before crisis; sober, measured approach to reform only credible way forward
Hawkish BIS warns on dangers of ultra-low rates
Bank for International Settlements says degree of slack likely to be smaller than suggested by output gap models
Protection on long-term deflation hits highest levels since 2008
Hedge funds seeking protection against deflation and dealer hedging of residual short floor positions are cited as the reasons for a rise in prices on euro zero-coupon inflation options.
Inflation head leaves Deutsche Bank
Options trader also moves on
Arm yourselves against inflation, Jonathan Ruffer warns bond investors
Index-linked bonds are where investors will find value as the effects of the financial crisis unwind, advises founder of Ruffer LLC.
Scrambling for yield
The rebound of credit markets in 2009 enabled product providers to decrease risk as well as offer higher yields to investors in the Americas, using techniques such as multipliers or digital payoffs. The result is an increase in the number of deals,…
US inflation options sponsored forum: Recovery and development
The inflation market has had a challenging few months. In particular, many dealers were hurt by short positions in 0% inflation floors, causing sizeable losses for some firms. Sponsored by BGC Partners, Risk convened a panel of major inflation dealers in…
Losing the asset swap lifeline?
A price difference between inflation-linked and nominal bonds last year created a huge opportunity for real-money investors to benefit through asset swaps. Now the opportunity has diminished, how important are asset swap investors in providing inflation…
A return to domestic inflation
Activity in Europe’s domestic inflation derivatives markets dropped away after the collapse of Lehman Brothers. Now, dealers report buyers and sellers are starting to return. But there is likely to be less warehousing of risk by banks and a greater focus…
State benefits for RBS
Jezri Mohideen, head of rates trading for Europe, the Middle East and Africa at RBS, talks to Alexander Campbell
Solving the problem of inflation measures
With fears about future inflation still plaguing investors, inflation-linked products may seem like a sensible way of hedging against the rising cost of living. But the effect of substitution, interest rate rises and timing mean that returns on these…
Risk Inflation Forum 2010
A roundtable on inflation and inflation derivatives hosted by Risk magazine editor Nick Sawyer.
More to play for
Harry Harrison, head of rates trading at Barclays Capital, talks to Alexander Campbell