An Introduction to Inflation-Linked Bonds
نویسنده
چکیده
Inflation-linked bonds have gained notoriety in recent years. The global volume has increased tenfold in the past decade, with the United States, the United Kingdom, and France among the largest issuers of these securities. Inflation-linked bonds (commonly known as linkers) are a unique asset class in that it is one of the few that offers a nearly perfect (direct) hedge against inflation, while also having a low correlation to other risk assets. Therefore, these securities provide diversification for many portfolios; in particular, blending stocks and linkers in a portfolio is viewed as optimal.
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