Inflation

Many pundits seem to be convinced that lower public sector creditworthiness and higher inflation are inevitable parts of our economic future

Inflation linked bonds are bonds whose principal is linked to inflation which allows their holders to protected against inflation as opposed to traditional bonds.

The situation appears to be a paradox. France is just coming out of a crisis but real estate prices have sharply increased during the previous months and have only slightly decreased at the height of the crisis. How can this phenomenon be explained?

The inflation break-even is the difference in yield between a conventional bond (coupon rate) and its inflation-linked (real rate) equivalent (the same issuer, same maturity ...) ...

According to Christophe Dehondt, fund manager of CPR Focus Inflation, it is possible to benefit from the rise in inflation while being hedged against rising interest rates by buying inflation-linked bonds and selling traditional sovereign bonds with similar maturity...