Inflation risk
The periodical problem
The periodical problem
Inflation derivatives house of the year: Royal Bank of Scotland
Risk awards 2012
Inflationary pressures spur pension funds to seek hedges
Inflated concerns
Inflation estimate errors costing defined benefit sponsors £50 billion
Overestimated inflation projections could be costing UK defined benefit scheme sponsors more than £50 billion in unnecessary funding commitments, a corporate adviser warns
Pension funds urge US Congress to act fast on debt-ceiling deal
Pension funds and investment firms highlight inflation, interest rate and currency risks of US default in open letters to President Obama
Video: De-risking pension liabilities
Emanuel Eftimiu speaks to Kelvin Wilson, associate director, Grant Thornton about defined pension fund liabilities and what they mean for private equity buyers.
Negative long-term US inflation outlook means hedging currently underpriced for insurers and pension funds
Current US economic data is masking the cheapness of inflation hedging
Investors turn to hybrid equity strategies as volatilities descend to three-year lows
Investors turn to hybrid equity strategies as volatilities descend to three-year lows
Vigilance needed to prevent curse of inflation in Asia
The curse of inflation
Reducing approximation errors in LPI swaps
Reducing approximation errors in LPI swaps
Canada pressed to develop inflation market
Current issuance of inflation-linked bonds is too meagre to meet demand from domestic and international investors, say market participants
Real estate provides inflation hedging – but only over the long-term
Correlation between inflation and real estate investment can be negative in the short term but almost perfect on a long-term time horizon
Coming inflation means UK pension funds should expand equity allocation
QE2 will spur above target inflation in 2011 and low real yields mean pension funds should look to shares
Germany - liability-driven investment goes mainstream
Time for change
A focus on LDI counterproductive for pension funds – M&G Investments
Returns as important as risk management, say M&G Investments
Google price index gets analysts’ thumbs-up
Commentators praise the innovation underlying Google price index; despite limitations, index could work as a CPI subset
Expect double-dip, not inflation, says CreditSights' Purtle
Chief strategist at CreditSights Louise Purtle warns that global deleveraging makes double-dip recession more likely than inflation.
PPF offers potential £80 billion boost to longevity market
UK’s PPF is open to longevity derisking – at the right price
Hedging costs to soar for UK pension funds
Best of RPI and CPI exposure will cost up to 100 basis points to hedge, as well as increase the size of liabilities, say participants
Shift to CPI will not impact pension fund inflation hedging demand – M&G
Limited impact of CPI change on pension funds inflation hedging
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
US Treasury yield movements betray deflation danger
Inflation often accompanies the end of the recovery after a crisis, but while US companies may fear high inflation, banks and investors increasingly see deflation as the more serious risk to the US economy.
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.